London Daily

Focus on the big picture.
Friday, Oct 09, 2026

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
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
×