Overview

This bill aims to amend the Welfare Reform Act 2012, preventing Universal Credit claimants from being sanctioned for refusing zero-hours contracts. It seeks to protect individuals from potential exploitation associated with such contracts while claiming benefits.

Description

The Universal Credit Sanctions (Zero Hours Contracts) Bill modifies the Welfare Reform Act 2012. Specifically, it adds a new clause (section 27A) that explicitly states Universal Credit claimants cannot be penalized for rejecting zero-hours contract employment. The bill defines "zero-hours contract" in line with the Employment Rights Act 1996. The bill applies to England, Wales, and Scotland and will come into effect 90 days after its passage.

Government Spending

The bill is likely to increase government spending on Universal Credit. The exact amount is difficult to predict but will depend on the number of claimants who previously faced sanctions for refusing zero-hours contracts and are now eligible for continued benefits. No specific figures are provided in the bill itself.

Groups Affected

• Universal Credit Claimants: Those on Universal Credit will be directly affected. The bill protects them from sanctions for declining zero-hours contracts, potentially improving their financial security and job choice.
• Employers: The bill might indirectly affect employers offering zero-hours contracts. The removal of sanctions as a lever to encourage job acceptance could influence their hiring practices.
• UK Government: The government will face increased expenditure on Universal Credit due to the removal of sanctions.

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