The government's consultation on zero hours contracts closed at 11:59pm on 25 August 2026. New rules on shift notice are expected in 2027. Most small employers have not yet worked out what they will cost.
01What was consulted on
According to gov.uk, the consultation covered three new rights. They apply to people on zero or low hours contracts.
The first is a guaranteed hours offer, based on the hours a worker usually works. The second is reasonable notice of shifts, and of any change to them. The third is a payment when a shift is cancelled, cut short or moved at short notice.
The detail will be set out in regulations. According to gov.uk, the measures have not yet taken effect. The government's stated preference is a 12-week reference period for guaranteed hours.
So how much notice will employers have to give? That is not settled. According to Make UK, one, two, three and four weeks are all still on the table.
02What it could cost
According to the government's own impact assessment, reported by City AM, the reforms could cost businesses up to £3bn a year.
Guaranteed hours makes up to £450m of that. Reasonable notice of shifts makes up to £1.2bn. Payment for cancelled shifts makes up to £1.3bn.
Those are national numbers, not a bill for any one business. They still show where the pressure sits. Two of the three costs land when trade is quiet and shifts get cut late.
03Why it is a cash flow story
Employers who staff to demand feel this first. Hospitality, retail, care and logistics all book people against a week they cannot fully predict.
Today a quiet week can be handled by cutting shifts at short notice. Under the new rules that may carry a payment instead. A cost you could cut may become a cost you have to pay.
That is a working capital question. The time to answer it is before the rules start. Our guide sets out how to price the gap and what finance suits it: zero hours reform and your cash flow.
Do the sums point to a buffer? Working capital finance is easier to arrange before the rules start than after.
