London Daily

Focus on the big picture.
Sunday, Aug 02, 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
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×