NHS warned of £1bn cost from zero-hours contract reforms

NHS Employers has warned that proposed government reforms to zero-hours contracts could cost the NHS nearly £1 billion annually. The warning comes as a consultation on the Employment Rights Act 2025 approaches its deadline.

The proposed measures aim to end “one-sided flexibility” by granting employees rights to guaranteed hours, reasonable notice for shifts, and compensation for cancelled or moved shifts. While NHS Employers supports the goal of ending exploitative practices, they argue that the current proposals do not account for the operational realities of healthcare.

Health leaders note that many NHS staff use internal banks to provide flexible, two-way working arrangements that help manage sickness and sudden workforce pressures. There are concerns that the new regulations could increase bureaucracy, reduce the flexibility valued by many bank workers, and force a reliance on more expensive agency staff.