• Record 1.23 million UK workers now on zero-hour contracts in main employment, underlining the urgent need for quick implementation of new rights
• New analysis shows annual growth of 91,000 has been driven by young workers aged 16-24 and workers not in full-time education
• Young workers (aged 16-24) are 5.1 times more likely to be on zero-hour contracts
• New legislation to ban ‘exploitative’ zero-hour contracts is slated for 2027, with Government consultation on key rights – including a right to guaranteed hours, advance notice of shifts, and financial compensation for late shift cancellations – expected imminently
• Government must deliver plans in full and as soon as possible to give certainty to workers and employers – and prevent numbers on zero-hour contracts growing, think tank says.

The Work Foundation at Lancaster University – a leading think tank for improving working lives – 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 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.

Ben Harrison, Director of the Work Foundation at Lancaster University said, “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 kerb their use. 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 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. 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.”

Road to reform?

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.

Harrison continues: “In a weakening jobs market, there is a risk that an increasing number of workers find themselves having to rely on insecure jobs which do not provide predictable income or hours. The Government has the opportunity to provide a roadmap to security for these workers, reflecting a core manifesto pledge. The latest data underlines why this must remain a priority in 2026.”

Claire Reindorp, Chief Executive, Young Women’s Trust, said: “Our research has shown that many young women are forced to take on zero-hour contracts as they’re often the only jobs available. Like most of us, young women need a predictable wage and a secure job, so they can plan for their future – and even just plan their food budget for the week. But these insecure, unpredictable contracts leave young women not knowing how to juggle payments for essentials until their next pay check, or wasting money on childcare for shifts that don’t materialise.

“It’s alarming that these contracts are on the rise, just when the Government has committed to scrapping them. Young workers can’t wait any longer for security – they need the new legislation to be implemented urgently, without delays, and in full.”

Paul Nowak, TUC general secretary, said: “Change can’t come soon enough for workers across the country.

“These new figures show zero hours contracts are still plaguing the labour market – trapping workers in insecure jobs with little control over their hours and pay.

“That’s why the Employment Rights Act, which is set to ban exploitative zero hours contracts, is so important. These new rights must be implemented in full and as soon as possible.

“This will make a real difference to working people's living standards. And it will keep people in work too, by letting people move into and stay in jobs rather than cycling between insecure zero hours work and unemployment.”