London Daily

Focus on the big picture.
Saturday, Nov 29, 2025

U.K. Plans Job Aid for Hot Spots With Virus ‘Out of Control’

U.K. Plans Job Aid for Hot Spots With Virus ‘Out of Control’

The U.K. government announced emergency measures to avert a wave of job losses as Boris Johnson prepares new pandemic restrictions to tackle a disease that is spreading out of control.

Under plans announced by Chancellor of the Exchequer Rishi Sunak, the state will pay two-thirds of the wages of workers in companies forced to close by tighter rules expected to be imposed next week.

The extra support, which Treasury officials said is expected to cost hundreds of millions of pounds a month, was announced ahead of curbs that could close bars and restaurants in areas of northern England where the disease is spreading fastest.

‘Unbelievably Serious’


A fresh crackdown is now vital because the U.K. is in an “unbelievably serious situation” with the pandemic “getting out of control,” government minister Gillian Keegan told the BBC.

The new wage support plan comes just days after Sunak opted to end the blanket aid for jobs under his original program, in favor of a policy that only helped support part-time work in “viable” roles.

While that was an attempt to limit the spiraling costs of the program, economists warned it could cause unemployment to spike beyond 3 million people. At the time, Sunak said he couldn’t save every job -- but the resurgence of coronavirus, and the threat of extended lockdown measures, has forced him to act.

“I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves,” the chancellor said. Sunak’s opponents argued that he was being forced into a policy reversal.


‘Chaos and Incompetence’


“The fact the Chancellor is having to tear up his Winter Economic Plan before the autumn is out demonstrates the chaos and incompetence at the heart of government,” said Anneliese Dodds, economy spokeswoman for the opposition Labour Party.


Sunak’s New Plan


*  Starting on Nov. 1 and lasting six months, firms closed by any curbs will only have to cover tax contributions for employees who aren’t working -- equating to about 5% of their wages.

*  That’s a better deal than the 55% they were due to pay for staff fulfilling just a third of their normal hours under the previous proposals, and throws a lifeline both to firms which may be closed in coming weeks as well as others, such as nightclubs, which have yet to open their doors since the pandemic hit.

*  Companies will also receive larger grants if they are forced to close, with the biggest receiving as much as 3,000 pounds ($3,900) a month.

*  Still, workers themselves will see their overall pay drop to 66% of normal, from 77% under the previous plan, while the extra support may come to late for those who have already been let go ahead of the end of the furlough plan.

The mayors of Greater Manchester, Sheffield, North Tyne and Liverpool welcomed the chancellor’s action, but in a joint statement warned Sunak “would not appear to have gone far enough to prevent genuine hardship, job losses and business failure this winter.”

Since the national lockdown was lifted in June, the government has adopted what it calls a “whack-a-mole” approach, using localized restrictions to try to contain outbreaks. But the strategy hasn’t reduced infection rates in many areas.

The highest infection rates are in northern England, which is expected to be the focus of new restrictions brought in by Johnson’s team next week.

In other developments:

*  London Mayor Sadiq Khan said new stricter lockdown restrictions for the capital are inevitable. London is at a “very serious tipping point,” he told LBC Radio on Friday.

*  The Office for National Statistics said the infection rate almost doubled in the week through Oct. 1, with an estimated 17,200 new cases each day.

*  Another study, conducted by Imperial College, London, found 1 in 170 people in England had the virus between Sept. 18 and Oct. 5, with 45,000 new infections every day in the period. The report, based on tests of 175,000 volunteers, identified an eightfold increase in infections in people over the age of 65 compared with the previous period.

Newsletter

Related Articles

0:00
0:00
Close
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
×