Speeches

Alison McGovern – 2015 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Alison McGovern on 2015-02-10.

To ask the Secretary of State for Work and Pensions, how many zero-hours contracts were advertised on Universal Jobmatch in each of the last 12 months.

Esther McVey

Information published by the Office for National Statistics suggests zero-hours contracts make up a small part of the overall labour market, accounting for about 2-4% of all people in work.

There are a broad range of vacancies available on Universal Jobmatch, offering various types of contracts to jobseekers. Universal Jobmatch (UJ) was designed to be a self-service job posting and matching service. Before employers can access the service and start advertising job vacancies they are required to subscribe to specific Terms and Conditions. The Terms and Conditions state, that job postings must provide a full, clear and accurate job description of an actual (genuine) job or work opportunity. Further, there is also the requirement that all job postings comply to employment related legislation such as Working Time Legislation and National Minimum Wage.

When a job is being advertised on behalf of another employer (e.g. recruitment agency or job board) a contract should be in place with the end employer. The onus is upon the employer / agency to conform to the Terms and Conditions. DWP and the UJ Service Provider work collaboratively and proactively to ensure system compliance and where an employer is identified as breaching Terms and Conditions, appropriate action is taken. If the employer continues to breach Terms and Conditions, the circumstances will be investigated and access to UJ may be withdrawn.

Jobseekers claiming Jobseekers Allowance are not required to apply for zero-hours contract vacancies, they will not be sanctioned as a result of not applying. UC claimants who refuse to accept a zero hours contract job offer, without good reason, can be subject to a sanction. However a UC claimant will not be sanctioned for refusing to take a zero hours contract with an exclusivity clause.

UC automatically adjusts benefit payments depending on the number of hours a person works – whatever the type of contract. Where Universal Credit claimants refuse to apply for a role, including a Zero Hours Contract role when mandated to do so or refuse to accept a job offer, they can be sanctioned. People on UC will not be required to sign up to zero hours contracts which require exclusivity, so they will always have the opportunity to gain more hours elsewhere.

Universal Credit (UC) will substantially improve incentives to work, allowing people to keep more of the money they earn before it has any impact on the amount of UC they receive.