- Updated: February 26, 2026
- 5 min read
Record 1.23 million UK workers on zero‑hours contracts – New Labour legislation
The United Kingdom has reached a new high of 1.23 million workers on zero‑hours contracts, a figure that underscores growing precarity in the labour market and fuels urgent calls for legislative reform.
Record 1.23 Million UK Workers on Zero‑Hours Contracts Sparks Policy Debate
According to the latest analysis from the Work Foundation at Lancaster University, based on Office for National Statistics (ONS) data, the number of people employed on zero‑hours contracts rose to 1.23 million in December 2023, up by 91,000 from the previous year. This surge is driven primarily by younger workers and those not in full‑time education, marking a critical inflection point for UK employment policy.
Figure: Zero‑hours contract prevalence by age group, 2023.
Who Is Most Affected? Young Workers Lead the Statistics
The data reveal a stark age gradient:
- Workers aged 16‑24 account for over 40 % of all zero‑hours contracts, making them five times more likely to be on such arrangements than older employees.
- Women represent 54 % of the zero‑hours workforce, highlighting gendered dimensions of employment insecurity.
- Full‑time students and recent graduates are increasingly turning to zero‑hours roles as a gateway to their first job, despite the lack of guaranteed income.
“You never know what your pay will be at the end of the month,” says 22‑year‑old Anna Jameson, a retail worker from South Yorkshire, illustrating the lived reality behind the statistics.
Labour‑Backed Legislation Aims to End the ‘Exploitative’ Model
In its 2024 election manifesto, the Labour Party pledged to ban zero‑hours contracts deemed “exploitative” and to embed a right to guaranteed hours within the Employment Rights Act. The proposed measures include:
- Automatic entitlement to a minimum number of guaranteed hours for eligible workers.
- Requirement for employers to provide “reasonable notice” of shift schedules.
- Compensation for shifts cancelled with short notice.
The Department for Business and Trade (DBT) has signalled its support, stating it will “ensure people can have the security they need by giving eligible workers the right to guaranteed hours.” However, the final rules remain subject to consultation and secondary legislation in the Commons.
Voices from the Frontline: Workers, Unions, and Government
Reactions to the record figures have been swift and varied:
- Trade unions such as the TUC have called for immediate implementation of the Employment Rights Act provisions, warning that “zero‑hours contracts trap workers in insecure jobs with little control over their hours and pay.”
- Workers like Anna Jameson describe the daily uncertainty as “constantly fluctuating hours and wages,” which hampers long‑term financial planning and housing stability.
- Government officials argue that zero‑hours contracts can provide flexibility for both employers and employees, especially for young people balancing study and work.
What the Record Means for the UK Labour Market
The rise to 1.23 million contracts has several far‑reaching implications:
| Implication | Potential Impact |
|---|---|
| Income volatility | Higher rates of debt and reliance on welfare support. |
| Productivity paradox | Employers may benefit from flexible staffing, but overall workforce morale could decline. |
| Policy pressure | Accelerated legislative action and possible new regulatory frameworks. |
| Talent pipeline | Young workers may seek alternative career paths if insecurity persists. |
Economists warn that prolonged reliance on precarious contracts could erode consumer confidence, suppress spending, and ultimately slow economic growth. Conversely, a well‑designed regulatory shift could unlock more stable, productive employment for millions.
How AI and Automation Can Help Employers Transition
Modern AI platforms are already assisting businesses in redesigning workforce schedules, forecasting demand, and ensuring compliance with emerging labour laws. For example, the UBOS platform overview showcases tools that automate shift planning while respecting guaranteed‑hour mandates.
Start‑ups can leverage the UBOS for startups suite to build compliant hiring workflows without extensive legal overhead. Meanwhile, Enterprise AI platform by UBOS offers large organisations predictive analytics to balance flexibility with employee security.
Specific UBOS solutions that align with the new legislative landscape include:
- Workflow automation studio – automates contract reviews and alerts HR when guaranteed‑hour thresholds are breached.
- Web app editor on UBOS – lets HR teams create custom dashboards for real‑time monitoring of zero‑hours usage.
- AI marketing agents – can be repurposed to communicate policy changes to staff in a clear, engaging manner.
By integrating these AI‑driven tools, employers can not only comply with upcoming regulations but also improve employee satisfaction, reduce turnover, and boost overall productivity.
Explore More Resources on UBOS
Want to see how AI can transform your workforce strategy? Visit the UBOS homepage for a full suite of solutions, or learn about our About UBOS story and why we focus on ethical AI.
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Original Reporting
For the full BBC coverage of the record zero‑hours contract figures, see the article on BBC News.
Bottom Line
The surge to 1.23 million workers on zero‑hours contracts marks a pivotal moment for UK employment policy. While the Labour‑backed legislative package promises greater security, the transition will require coordinated action from government, unions, and employers. Leveraging AI platforms such as those offered by UBOS can streamline compliance, improve workforce planning, and ultimately create a more stable labour market for the next generation of workers.