London Daily

Focus on the big picture.
Friday, Feb 27, 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
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
Apple just dropped iOS 26.4.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
Shadow Diplomacy: How Harry and Meghan’s Jordan Trip Undermines the Monarchy
Sir Jim Ratcliffe, co-owner of Manchester United, comments on immigration in the UK.
Bill Gates, the UN and the WEF are attempting to construct "a giant digital gulag for all of humanity" via digital ID, CBDCs and vaccine passport infrastructure.
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
General Atlantic to sell equity stake in ByteDance, valuing the company at $550 billion
German Chancellor Friedrich Merz Secures Pledge from China for Greater Imports of Quality Goods
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
×