The UK labour market is at a pivotal moment. While employment has remained relatively resilient, insecurity has become a defining feature of modern work. In 2023, one in five workers – 6.8 million people – experienced severely insecure work, driven by unpredictable hours, unstable pay, and limited protections. The Government pledged to bring the world of work into the 21st century, and the new Employment Rights Act could mark a turning point. Our Work Foundation report, Increasing Job Security, examines the likely impact of two key reforms: day one unfair dismissal rights and stronger regulation of zero-hour contracts. Using 2023 Labour Force Survey data and the UK Insecure Work Index, we have estimated how these policy changes could have reduced levels of insecure work. SHAPED BY INSECURITY One in five workers (21.4%) were in severely insecure work in 2023. This reflects a combination of risk factors: short or temporary contracts; variable or zero hours; low pay; limited employment protections; and little predictability over earnings. The impact stretches beyond their working lives and influences whether they can plan financially, secure housing, and even plan childcare. The new Employment Rights Act seeks to address some of these structural drivers but some of the detail is still to be determined through public consultation and secondary legislation. A CHANGE OF POLICY In late 2025, the Government made a significant shift to a headline policy. Ministers had promised to introduce ‘day one’ protection from unfair dismissal, replacing the current twoyear qualifying period. Following challenges in the House of Lords and by businesses, the Government decided to retain a qualifying period for unfair dismissal, but dramatically reduced it from the current two years to six months. Work Foundation at Lancaster University research indicates that had this new right been implemented in 2023, the number of people in severely insecure work would have fallen by 1.2 million and up to 3.9 million workers would have had more secure jobs. Furthermore, it would have disproportionately benefited women, young workers, workers from ethnic minority backgrounds and disabled workers, who are currently more likely to experience the most precarious forms of employment. This shorter qualifying period will be implemented from early 2027. This will 24 |
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