The Work Foundation at Lancaster University warns that the number of people on zero-hour contracts has reached record levels and calls for the Government to deliver new rights for workers in early 2027.
New analysis of ONS data by the think tank shows there are 1.23 million people on zero-hour contracts. Researchers state that recent increases indicate that employers have not reduced their reliance on precarious work, with figures hitting the highest level on record.
Analysis shows that 181,000 more people are on zero-hour contracts than when the Government was elected in July 2024. This growth has particularly impacted young people aged 16-24 and those not in full-time education.
The think tank says this reinforces the need to deliver the new rights in the Employment Rights Act in full, as soon as possible.
While zero-hour contracts have previously been heralded as the solution to flexibility around education or childcare, analysis shows that a record high of 943,000 zero-hour contract workers are not in full-time education (77%). The new data found:
- One in eight young workers in the UK are on these contracts in 2025 (12.5%). They are 5.1 times more likely to be on zero-hour contracts than other age groups (12.5% vs 2.44% of those aged 25+)
- Women are 1.2 times more likely be on zero-hour contracts (54% vs 46%)
- A third of zero-hour contract workers – a record high – depend on them for full-time work (32.8%), with many wanting more hours and a new and/or additional job.
“This new data indicates that some employers continue to rely on highly precarious forms of employment such as zero-hour contracts, despite the Government’s commitment to curb their use,” said Ben Harrison, Director of the Work Foundation at Lancaster University.
“Such arrangements underpin the kind of ‘one-sided flexibility’ that leaves over a million workers unsure how many hours they will work or how much money they will earn next week.”
Now that the Employment Rights Act has passed, it is imperative that legislators prioritise finalising the new regulations that will provide workers with a new right to guarantee hours, he said.
“Our previous research indicates that nine in ten zero-hour contract workers in 2023 would have qualified to be offered guaranteed hours under the Government’s original proposal of a 12 week reference period. This would represent an important step towards providing more security and certainty for workers currently on these kinds of insecure contracts.”
Reform on the way
A central plank of the Employment Rights Act, rights that reform ‘exploitative’ zero-hour contracts are tabled to come into effect during 2027. Under current plans, the reforms will ensure employers offer guaranteed hours to workers on zero-hour contracts after a ‘reference period’ – previously suggested to be 12 weeks. The consultation on these rights, is expected imminently. The think tank says it is vital these new rights are delivered in full and as quickly as possible. In the meantime, the number of people relying on zero-hour contracts is growing.
Analysis shows that zero-hour contracts are concentrated in sectors including accommodation and food; transportation, arts and other services; health and social work; education; and wholesale and retail.
Researchers state the continued use of zero-hour contracts is more likely to impact groups already facing structural inequality in the labour market including women, young people, disabled people and people from ethnic minorities.
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