London Daily

Focus on the big picture.
Monday, Jul 13, 2026

UK finance minister promises ‘opportunities’ for unemployed as his scheme may save ‘only 230,000 jobs’

UK finance minister promises ‘opportunities’ for unemployed as his scheme may save ‘only 230,000 jobs’

Chancellor Rishi Sunak envisages new opportunities for British people who lose their jobs, as new data shows a sharp fall in employment and a record rise in redundancies in August.

For the unemployed, there will be “new opportunities through apprenticeships, traineeships and our two billion pound Kickstart scheme, and extra work search support,” the finance minister said on Tuesday, as the aim is to “ensure nobody is left without hope.”

"I’ve been honest with people from the start that we would unfortunately not be able to save every job. But these aren’t just statistics, they are people’s lives."


The new tiered system of restrictions imposed by the UK government on Monday may hit the hospitality industry hardest of all.

Sunak already announced an extension to the job retention scheme on October 9 to support employers over the winter. The government will pay 67 percent of employees’ wages for businesses that are legally required to close. Employers will not be required to contribute any wages, but they will have to pay national insurance and pension contributions.

The country’s unemployment rate rose by more than expected, to 4.5 percent, in the three months to August. This is up from 4.1 percent in the three months to July, according to official data published on Tuesday.

The number of unemployed rose by the most since the global financial crisis in 2009, according to the Office for National Statistics. Redundancies jumped by a record 114,000 on the quarter to 227,000, also the highest level since 2009.

Analysts warn that many firms that won’t be required to close might also be affected by local lockdown restrictions.

The Institute for Public Policy Research (IPPR), a think tank, estimates the new scheme would only protect some 230,000 jobs, while about two million viable jobs could be put at risk when the current program closes at the end of the month.

“A far larger number of people are being abandoned by the government [because of] the flawed design of the job support scheme,” said Clare McNeil, associate director of the IPPR.

“We estimate that only one in 10 workers in viable jobs will be supported by this scheme.”

A part-time work subsidy is needed that avoids mass redundancies while allowing more employees to keep their jobs on fewer hours, according to McNeil.

Newsletter

Related Articles

0:00
0:00
Close
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
×