Government analysis estimates that banning zero-hours contracts could cost employers between £350 million and £2.9 billion annually, with a central estimate of £1.1 billion. Ministers argue the reforms would give workers more predictable hours and compensation for cancelled or changed shifts, potentially improving wellbeing, engagement and productivity.

The consultation considers extending protections to people working up to 48 hours weekly, although the Government prefers an eight-to-20-hour threshold. Workers could receive £5 million to £1.2 billion in payments for short-notice shift changes, while retail, hospitality and business groups warn that extra costs could discourage hiring, particularly for young people.