# UK employment and housing regulatory reforms > Live situation record from CLSTR: https://clstr.news/situations/uk-employment-and-housing-regulatory-reforms > Updated: 2026-08-24T00:00:00.000Z. Sources: 26. Developments: 5. The UK government is advancing regulatory reforms targeting employment and housing. Under the proposed Employment Rights Act 2025, reforms to zero-hour contracts would require employers to offer guaranteed hours based on workload and provide reasonable notice for shifts. Workers would also be entitled to compensation for shifts that are cancelled, curtailed, or moved at short notice. Government impact assessments indicate these employment changes could cost businesses between £350 million and £2.9 billion annually, with a central baseline estimate of £1.1 billion. While officials argue the measures will support economic growth, industry groups have raised significant concerns. The CIPD has warned that new regulations could increase management costs for 65% of employers and lead 31% to consider redundancies. Additionally, 33% of employers using zero-hours arrangements expect to increase their reliance on self-employed contractors or temporary staff to mitigate costs. The CIPD has called for tripartite discussions between the government, unions, and employers to ensure regulations remain workable, particularly as 479,000 individuals aged 16-24 are currently on such contracts. Sector-specific warnings have also intensified. NHS Employers has cautioned that the reforms could cost the NHS nearly £1 billion annually. While supporting the goal of ending “one-sided flexibility,” the group argues the proposals may increase bureaucracy and reduce the flexibility of staff banks used to manage sickness and sudden workforce pressures, potentially forcing a reliance on more expensive agency staff. Meanwhile, TUC General Secretary Paul Nowak continues to describe zero-hours arrangements as “endemic” and “exploitative,” noting that one in three workers faces annual financial losses of at least £3,000 due to cancelled shifts. ## Claims - Reforms to zero-hours contracts under the Employment Rights Act 2025 could cost up to £2.9 billion. (single source) - As of December 2025, 1.23 million people in the UK were employed primarily under zero-hours contracts. (single source) - The BBPA is calling for a request-based system for guaranteed hours to maintain operational flexibility. (single source) - The union Usdaw argues that guaranteed hours contracts must apply to all workers to meet manifesto commitments. (single source) - The Unite union expressed concern that a proposed regularity requirement could exclude many workers from qualifying for new rights. (single source) - Changes to zero-hours contracts are scheduled for implementation in early 2027. (single source) ## Timeline ### 2026-08-24: NHS warned of £1bn cost from zero-hours contract reforms NHS Employers warns that UK government reforms to zero-hours contracts could cost the NHS nearly £1 billion per year and disrupt essential workforce flexibility. 12 sources. https://clstr.news/cluster/nhs-trusts-face-900m-zero-hours-contract-bill ### 2026-08-23: UK employment debate intensifies over zero-hours contracts The TUC and CIPD have issued warnings regarding UK zero-hours contracts, citing concerns over worker exploitation and the potential for employment reforms to increase business costs and limit youth job access. 3 sources. https://clstr.news/cluster/uk-employment-debate-intensifies-over-zero-hours-contracts ### 2026-08-20: UK zero-hours contract reforms face business and union criticism UK reforms to zero-hours contracts under the Employment Rights Act 2025 face backlash from businesses fearing costs and unions warning of watered-down protections for workers. 3 sources. https://clstr.news/cluster/uk-zero-hours-contract-reforms-face-business-and-union-criticism ### 2026-08-12: UK zero-hours contract reforms could cost businesses up to £2.9bn annually UK government analysis estimates that reforming zero-hours contracts could cost businesses up to £2.9 billion annually, despite projections that improved worker wellbeing will support long-term economic growth. 7 sources. https://clstr.news/cluster/uk-zero-hours-contract-reforms-could-cost-businesses-up-to-29bn-annually ### 2026-08-10: UK government advances reforms on employment and housing The UK government is advancing reforms to zero-hour contracts, short-term rental regulations, and social housing management, with business leaders warning of significant economic costs. 2 sources. https://clstr.news/cluster/uk-government-advances-reforms-on-employment-and-housing --- Cite as: UK employment and housing regulatory reforms. CLSTR, https://clstr.news/situations/uk-employment-and-housing-regulatory-reforms