Zero hours and shifts reforms could cost up to £2.9bn – our response

Government analysis reveals up to £2.9 billion annual employer cost of reforms to zero hours contracts and shifts.

New Government analysis estimates that the direct cost to employers of proposals to reform zero hours contracts and shifts is between £350 million and £2.9 billion a year.

Kate Nicholls, Chair of UKHospitality, said: “The eyewatering cost of these reforms come at the worst possible time for hospitality businesses, arriving on the heels of more than £5 billion in additional employment costs in the past two years.

“More than 100,000 jobs have already been lost in hospitality as a result and the extraordinarily high cost of employment continues to restrict job opportunities, particularly for young people. This is on top of hospitality being disproportionately hit by business rates and our high rate of VAT.

“The Government should be incentivising employment in hospitality, as a sector that employs the most young people, most part-time workers and the most non-graduates.

“Instead, these reforms add yet more cost, at a scale that far outweighs the cost benefits for employees.

“It’s critical the Government works with sectors like hospitality to reduce the cost of employing people and incentivise employment, rather than increasing costs and risking further lost job opportunities.”