Record 744,000 workers on zero-hours contracts

The number of people on zero hours contracts for their main job that provide no guarantee of work has soared by almost a fifth to a record 744,000 in the past year, according to new official figures.

The latest data also shows that the number of Londoners estimated to work in the zero hours sector - criticised by unions as exploitative and insecure - reached almost 100,000 in the April to June quarter.

The findings were condemned by TUC chief Frances O’Grady as “a stark reminder of Britain’s two-tier workforce. I challenge any minister or business leader to survive on a low-paid zero-hours contract job, not knowing from one day to the next how much work they will have.”

The TUC estimates that typically people on short term contracts earn £300 a week less than their counterparts in secure staff employment. Before the general election David Cameron conceded that he could not live on a zero hour contract and Ed Miliband pledged to abolish them.

Today’s figures from the Office for National Statistics show that around one worker in 40 is now on a zero hours deal, up from one in 50 a year ago. The total has trebled since 2012.

Government statisticians said the survey data pointed to a “steadily rising trend” in the number of zero hours contracts but conceded that could be partly due to increased recognition of the term.

Those on zero hours are more likely to be women and students than the general working population. Around 40 per cent of people on zero hours contracts wanted more work but almost 60 per cent said they were happy with the amount of work they were being offered by employers. On average they work 25 hours a week compared with 37 for the working population as a whole.

Jon Ingham, career and workplace expert at career advisers Glassdoor, said: “It’s safe to say that employees who accept a zero hours contract do not do so as a career choice. For most it’s because they have limited options. For some it might be beneficial to have the flexibility to fit around their lifestyle but for others it’s a substandard contract which offers little in the way of benefits or security.

“Whilst these contracts can provide a useful stop-gap, valuable work experience and the flexibility can be a positive depending on life stage, it stills feels like these employees are second class citizens.

Laura Gardiner, senior policy analyst at the Resolution Foundation thinktank, said: “While it’s true that some people value the flexibility, for many they bring deep insecurity. Alongside reduced employment rights, the potentially irregular nature of earnings they provide makes it hard to budget and plan ahead.