Overview

This bill seeks to amend the Welfare Reform Act 2012 to prevent Universal Credit claimants from being sanctioned for refusing zero-hours contracts. It aims to protect vulnerable individuals from the precarious nature of such employment and the potential loss of benefits.

Description

The Universal Credit Sanctions (Zero Hours Contracts) Bill modifies the Welfare Reform Act 2012. Specifically, it adds a new section (27A) that explicitly states that a reduction in Universal Credit payments (a sanction) cannot be imposed on claimants who refuse a zero-hours contract. The bill defines "zero-hours contract" using the same definition found in section 27A of the Employment Rights Act 1996. The bill applies to England, Wales, and Scotland and will come into force 90 days after parliamentary passage.

Government Spending

The bill is expected to increase government spending on Universal Credit. The exact figure is difficult to predict, as it depends on the number of claimants who refuse zero-hours contracts and the amount of benefit they would otherwise lose through sanctions. No specific cost estimates were available in the provided bill text.

Groups Affected

• Universal Credit Claimants: This bill primarily affects Universal Credit claimants, particularly those offered zero-hours contracts. It could lead to increased financial security for those who choose not to accept this type of work.
• Employers offering zero-hours contracts: The bill may indirectly affect employers who rely on zero-hours contracts, potentially making it more difficult to fill certain positions.
• Government: The bill is likely to increase government expenditure on Universal Credit payments.

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