London Daily

Focus on the big picture.
Friday, Jun 19, 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
Dorset Council Tests AI Tools to Streamline Local Planning Applications
UK Researchers at Kew Gardens Use AI to Speed Up Identification of Threatened Plant Species
UK Gilt Yields Ease Toward 4.8% as Inflation and Labour Market Data Weigh on Bonds
Bank of England Data Shows Resilient SME Lending Despite Economic Slowdown
UK Finance Reports Weakening Services Activity as Business Confidence Softens
UK Introduces Mandatory Internal Complaints Process Under Data Use and Access Act
Bank of England Governor Andrew Bailey Flags Geopolitical Uncertainty as Key Risk to Inflation Outlook
Bank of England Holds Interest Rates at 3.75% as Policymakers Signal Cautious Stance on Inflation Risks
Cornwall Clergy Raise £40,000 for Church Repairs Through Everest-Themed Charity Challenge
UK Business and Social Landscape Reflects Strain From Geopolitical and Domestic Pressures
Tensions Grow in UK Over Sikh Kirpan and Religious Symbolism in Public Debate
Energy Price Cap Increase Set to Lift UK Household Bills by 13 Percent
University of Reading Ranked 196th in QS World University Rankings
UK Maritime Archaeologists Identify 17th-Century Dutch Shipwreck Off Devon Coast
Oxford Union Islam Debate Sparks Protest From Faith Leaders in UK
UK Social Cohesion Debate Intensifies After Religious Prejudice Survey Findings
UK SME Lending Rises Despite Geopolitical Uncertainty and Cautious Outlook
Foreign Demand for UK Gilts Remains Sensitive to Global Inflation Trends
Labour Party Faces Leadership Pressure After Weak Local Election Results in UK
Transport Costs Drive Inflation Pressure as Petrol Prices Push Up UK CPI
British Chambers of Commerce Cuts Growth Forecast as Middle East Conflict Weighs on Investment
UK Economy Grows 0.6 Percent in First Quarter but Outlook Remains Weak
Bank of England Holds Interest Rates at 3.75 Percent as Inflation Risks Persist
Energy Price Cap Rise Expected to Keep UK Inflation Above Target Through 2026
Health Authorities Warn of Rising Cases of Seasonal Respiratory Illnesses
BAE Systems and Rolls-Royce Advance Multi-Nation Fighter Aircraft Programme
National Archives Publish Declassified Documents on Cold War Energy Security Planning
British Retail Spending Rises Despite Continuing Cost-of-Living Pressures
Wales Launches Social Housing Pilot to Address Affordability Pressures
British Energy Companies Commit £5 Billion to Geothermal and Hydrogen Projects
Northern Ireland Debates Cross-Border Healthcare Partnership With the Republic of Ireland
UK Establishes National Artificial Intelligence Safety Centre With Leading Universities
UK Reports Decline in Small Boat Crossings After Expanding Intelligence Cooperation With France
Scottish Parliament Launches Inquiry Into Delays to Renewable Energy Projects
National Crime Agency Dismantles Alleged Multi-Million-Pound Money Laundering Network in London
Transport Strikes Disrupt Rail and Bus Services Across Northern England
United Kingdom and European Union Open New Security Dialogue on Defense and Border Cooperation
Bank of England Holds Interest Rates at 5% as Services Inflation Remains Elevated
UK Government Unveils Major National Health Service Reform Focused on Decentralization and Performance Funding
Government Advances New Airport Slot Rules to Ease Airline Operating Constraints
BBC Opens Flagship Science-Fiction Franchise to Competitive Production Bids
Chancellor Meets City Leaders Amid Concerns Over Gilt Market Liquidity
Rathbones Shares Fall Seventeen Percent After Regulatory Review Reveals Compliance Failings
United Kingdom Joins Group of Seven Initiative Using Artificial Intelligence and Quantum Computing for Cancer Research
Parliament Debates Doubling Tax Allowance for Pensioners After Major Public Petition
Measles Cases Exceed Seven Hundred in London and the West Midlands
British Military Leadership Faces Parliamentary Scrutiny After Defence Secretary's Sudden Resignation
House of Lords Begins Debate on Steel Industry Nationalisation Legislation
Parliament Advances Bill to Abolish NHS England and Create Single Patient Records
Parliament Fast-Tracks National Security Bill to Expand Powers Against Foreign Threats
×