* Employees on zero-hours contracts are being paid 40% less per hour than other employees
* Labour is holding summit today on zero-hours contracts with representatives of employers and employees
On Tuesday 20 August, Labour is holding a summit on the issue of zero-hours contracts with representatives of employers and employees, including workers currently on zero-hours contracts, to discuss the growth in the use of zero-hours contracts and what steps can be taken to tackle their abuse and improve practices.
Whilst prices are rising faster than wages meaning people are nearly £1,500 a year worse off than they were at the general election, ONS data highlighted by the Resolution Foundation shows that those on zero-hours contracts are not only working fewer hours each week but they are also being paid far less for each hour they work. The average hourly wage of those on zero-hours contracts is £9 per hour compared with £15 per hour for employees not on zero-hours contracts.
Earlier this month the Chartered Institute of Personnel and Development found that as many as one million people at work could be employed on zero-hours contracts, four times as many as the most recent Office of National Statistics figure of 250,000.
This week, Shadow Business Secretary Chuka Umunna MP has written to Sir Andrew Dilnot, Chair of the UK Statistics Authority to raise concerns that official figures do not reflect the true scale of zero-hours contracts.
Chuka Umunna MP, Labour's Shadow Business Secretary said:
“David Cameron says he's fixed the economy, but for hard working families things are getting harder not easier. For too many things have become more difficult and less secure as they face a cost of living crisis in David Cameron’s Britain.
“New evidence highlights that there could be hundreds of thousands more people on zero-hours contracts than previously thought. That’s hundreds of thousands of people in insecure work earning far less than average pay. Flexibility works for some, but the danger today is that too often insecurity at work becomes the norm.
“The huge spike in the use of zero-hours contracts has brought increased reports of abuses and bad practice. There should be zero tolerance of such abuse. That is why Labour has convened this important summit bringing together representatives of employers and employers to consider what action must be taken. In contrast, this Tory-led government has refused to have a proper and full consultation on the rise of zero-hours contracts or to treat this issue with the seriousness which it deserves.”