Report: 250,000 people on zero hours contracts in 2012

A new report has shown that 250,000 people in the UK were on zero hours contracts at the end of last year - 25 percent more than previously thought.

The increase is due to a change in the way the figures are calculated, according to the report from the Office for National Statistics.

The contracts, under which employees have no guarantee of work, are thought to be one reason why employment figures have remained strong despite a flat-lining economy.

Read our Business Editor's blog on the rise of zero hours contracts here