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Insecure workers face £3,000 annual hit from unpredictable hours, TUC finds

TUC polling found nearly two-thirds of people in insecure work often or sometimes struggled to meet basic living costs because they were not offered enough hours.

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Insecure workers face £3,000 annual hit from unpredictable hours, TUC finds
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The Trades Union Congress (TUC) has called on the Government to press ahead with new rights to guaranteed hours, arguing that the financial impact of insecure work on employees is being overlooked in debate around the cost of employment reforms.

According to the Government’s impact assessment, one in three insecure workers report an average loss of more than £3,000 a year, or £250 over four weeks, due to recent workplace issues linked to insecurity of hours and income.

The losses include expected earnings as well as money already spent or committed on costs such as travel and childcare.

Separate TUC polling found nearly two-thirds of people in insecure work often or sometimes struggled to meet basic living costs because they were not offered enough hours.

More than half of respondents also said they were not paid the last time their hours were cancelled, rising to two-thirds among those on zero-hours contracts.

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The TUC said debate around guaranteed hours has focused disproportionately on potential costs to employers, including estimates ranging from £350m to £2.9bn.

It argued that the higher estimates assume employers continue cancelling shifts at short or no notice, despite the legislation being intended to reduce the practice.

The union body also pointed to an MHCLG survey indicating that a right to guaranteed hours could make it easier for around four in 10 people currently out of work to return to employment.

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Paul Nowak, TUC general secretary, said: “These new rights will give workers up and down the country more security at work and a better standard of living. Let’s call out attempts to water down these rights for what they are: blatant scaremongering – and it needs to stop.

“We are talking about low-paid precarious workers who don’t know how much they’ll be earning from week to week or the hours they’ll be working.

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“The government’s own analysis shows that 1 in 3 face a typical financial hit of £3000 a year because of this constant insecurity. That’s a huge cost for workers and their families.

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“But it’s not just workers that lose out because of insecurity – it’s our economy at large too.”

The TUC said the Employment Rights Act could deliver a £10bn economic boost through improved staff wellbeing, productivity and living standards, with 18 million workers expected to benefit directly from improved working conditions and job security.

Measures include reforms to statutory sick pay, stronger unfair dismissal protections, new bereavement leave and employment protections for pregnant women and new mothers.

Nowak added: “The Employment Rights Act would deliver a £10bn boost to the economy through improved staff wellbeing, greater productivity and better living standards boosting demand.

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“So good employers have nothing to fear from these new rights. This will level the playing field for them – and stop decent employers who do right by their staff being undercut by the bad.

“That’s why the new prime minister must ignore the noise and put an end to exploitative zero hours contracts by delivering these new rights to guaranteed hours in full.”

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