Government analysis released this week found that Labour's crackdown on zero-hours contracts could cost employers between £350m and £2.9bn a year, depending on how many weekly hours trigger the guaranteed-hours requirement. Officials favor a threshold of eight to 20 hours, which would land far below the upper estimate; unions have pushed for 48 hours, which would cost more. About £1.2bn of the higher estimate would come from compensating workers for cancelled shifts.
Skills Minister Baroness Jacqui Smith said the reforms ensure workers are
>, and hospitality and retail firms are expected to be hit hardest. The government also claims a potential £10bn economic boost from improved wellbeing and productivity, which would reduce net costs to between £300m and £1.4bn — a benefit officials admit is largely unmeasurable. Business groups called the costs disproportionate; unions said the costs only bite if employers keep cancelling shifts.
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