U.K. offers support for workers hit by job loss
Assistance to help workers in hard-hit hospitality industry
The British government said Friday it will pay two thirds of the salaries of workers in companies that have to close as a result of new coronavirus restrictions widely expected to come into effect next week.
In a change of policy, Treasury chief Rishi Sunak has responded to calls from businesses, local leaders and unions to provide a financial package to prevent mass job losses in sectors that are expected to be subject to tighter restrictions, such as pubs and restaurants in parts of northern England.
“I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves,” Sunak said. “The expansion of the Job Support Scheme will provide a safety net for businesses across the U.K. who are required to temporarily close their doors, giving them the right support at the right time.”
Sunak said the rise in cases and hospital admissions is a concern that requires a change in approach.
The U.K. has suffered Europe’s deadliest outbreak, with more than 42,600 deaths. The latest daily figures published Friday showed 13,864 new cases. Though down from the previous day’s 17,540, the number is around double the level from a week earlier. As infections rise, the number of people requiring hospitalization increases followed by deaths. The latest figures show the number of people being hospitalized fell slightly to 597, but the daily death toll rose to 87, the highest since early July.
With infections rising, the pressure on Prime Minister Boris Johnson to impose further local restrictions has grown. He is expected to back a new three-tier local lockdown system, which could temporarily close hospitality venues in coronavirus hot spots, including Liverpool, Manchester and Newcastle.
Under the terms of the new financial support package, the government will pay 67 percent of the salaries of workers who won’t be able to work, up to a maximum of 2,100 pounds ($2,730) a month. Employers will not be required to contribute toward wages.
Sunak also said cash grants for businesses required to close will also be increased to up to 3,000 pounds per month.
Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for seven consecutive days.
The changes will take effect from Nov. 1 and will be available for six months, with a review in January.