Think tank calls for guaranteed 30 hours of work under zero-hour contract ban

George Thompson, Press Association Political Staff

Workers should be given a guaranteed 30 hours of work under a proposed zero-hours contract ban, a think tank has said.

The Institute for Public Policy Research (IPPR) said the move is necessary to prevent workers falling behind on bills.

A ban on zero-hours contracts was included in Labour’s manifesto and the Government is consulting on whether to apply the policy to anyone working 48 hours a week, but its preference is for the threshold to be between eight and 20 hours.

The call comes after Government analysis revealed that plans to ban zero-hours contracts could cost businesses up to £3 billion a year.

In its report, the IPPR, a think tank influential on Labour policy whose recruits have become ministers, said its analysis showed employees without fixed hours working 20-30 hours a week were 73% more likely to fall behind on bills.

It argued a 30-hour threshold would deliver on the party’s aim to reduce income insecurity and raise living standards.

Joseph Evans, research fellow at IPPR and co-author of the research, said people can currently work close to full-time hours but have no certainty about what they will earn from one week to the next.

“That one-sided flexibility leaves workers carrying the financial risk and makes it much harder to budget, plan or keep up with household bills,” he said.

“Ministers are introducing vital protections against exploitative zero-hours contracts. But there is a risk that an eight to 20-hour threshold would exclude workers who are at greater risk of falling behind on bills.

“Setting the threshold at 30 hours would deliver a huge boost to the living standards of people who need it most.

“It would ensure that new employment rights deliver the ‘breathing space’ that the Prime Minister wants for households struggling with the cost of living.”

The IPPR research also argues the policy can be implemented without raising unemployment, with countries, including Ireland, the Netherlands and Norway, having legislated to give workers guaranteed hours.

On Wednesday, the Government published analysis which revealed that plans to ban zero-hours contracts could cost businesses up to £3 billion a year.

Skills minister Baroness Jacqui Smith defended the move, saying the proposed ban would ensure workers are “fairly paid” and secure in their jobs.

The proposed reforms are also expected to “support growth” by improving conditions for workers, an impact assessment said.

The direct cost to employers of a ban as a whole could be between £350 million and £2.9 billion per year – with an “indicative central” estimate of £1.1 billion, according to the data.

Speaking to Sky News on Thursday, Lady Smith said the Government will continue to talk to employers about how improvements for workers are implemented.

The skills minister also said: “We will look very carefully at how we implement the changes that we have put in place through our Employment Rights Act.

“But just to remind people why we did that in the first place, that’s to make sure that when people get into work, that will be work that is fairly paid, where they’ve got security, where they can combine it with the responsibilities that they have in their families.

“I don’t think it’s fair for somebody to be on a contract where they literally don’t know whether or not they’re going to be working at all, and yet they’re bound by that contract.

“That’s what we want to bring an end to.”

In its analysis, the Government said the proposals would mean workers were expected to receive payments of between £5 million and £1.2 billion because of the right to payments for shifts getting cut or moved at short notice.

It said the measures are expected to “support growth through improved worker wellbeing and engagement”, which research suggests is linked to increased productivity.

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