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Labour's zero-hours contracts ban to cost £3bn a year

19-08-2026

Labour's proposed crackdown on zero-hours contracts under the Employment Rights Act could cost businesses between £350m and £2.9bn a year, depending on the agreed hours threshold. The Government's own analysis suggests approximately £1.2bn of these costs stem from new requirements to compensate workers for cancelled shifts. The British Chambers of Commerce said the new figures significantly exceed the previous £1bn estimate for the entire employment reform package. The BCC and CBI have called for a "proper tripartite negotiation" between government, unions and business on how to implement any proposals

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