Call for clarity on zero-hours contracts and benefits

6 May 14
Labour has called on the government to clarify when benefit claimants are required to take a job with a zero-hours contract after warnings that those out of work could face sanctions if they turned down the controversial terms.

By Richard Johnstone | 6 May 2014

Labour has called on the government to clarify when benefit claimants are required to take a job with a zero-hours contract after warnings that those out of work could face sanctions if they turned down the controversial terms.

The Department for Work and Pensions said people offered zero-hours contracts when receiving the government’s Universal Credit benefit could face sanctions if they were to turn down work.

This does not apply under the current system for Jobseekers’ Allowance, but a DWP spokeswoman said the fact Universal Credit was able to react to changes in income in real time meant people would be encouraged to take the zero-hours deal. The average zero-hours contract provides workers with 25 hours of work a week and can lead to long-term opportunities, the spokeswoman said.

The rollout of the controversial Universal Credit reform has been delayed due to problems with the computer systems. However, under the system, up-to-date earning information will be compiled by Revenue and Customs. This is intended to allow Universal Credit payments to be adjusted to ensure people are always better off in work.

A DWP spokeswoman said: ‘It is right that people do everything they can to find work and that we support them to build up their working hours and earnings.

‘Universal Credit payments will adjust automatically depending on the hours a person works to ensure that people whose hours may change are financially supported and do not face the hassle and bureaucracy of switching their benefit claims.

‘With Universal Credit if there's a good reason someone can't just take a particular job they won't be sanctioned, as is the case now.’

Labour’s shadow work and pensions secretary Rachel Reeves said that the government needed to clarify the rules.

She highlighted that last month employment minister Esther McVey said no one at a Jobcentre Plus would be sanctioned for not applying for a job offering a zero-hours contract.

‘Now we hear that they’ll receive sanctions if they don’t. David Cameron’s government now needs to urgently clarify the circumstances in which someone will be forced to take a zero-hours job,’ she added.

‘The huge increase in zero-hours contracts under the Tory-led government is another sign of their failure to tackle the cost-of-living crisis and deliver a recovery that works for everyone. Labour would outlaw zero-hours contracts where they exploit people, as well as improving opportunities for jobseekers by reforming the failing Work Programme.’

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