A million jobs in peril as one in 16 UK firms say they are at risk of closure

<span>Photograph: Martin Lee/Alamy</span> — Photograph: Martin Lee/Alamy

A million workers are still employed by businesses at risk of closure over the next three months, as the government is poised to withdraw critical Covid support schemes, according to new analysis.

One in 16 firms say that they are now at risk of closure in the next quarter, the study by the LSE’s Programme on Innovation and Diffusion (POID) has found. While it marks a major rise in confidence since the worst depths of the pandemic in January, there are warnings that the risk to so many workers coincides with the planned end of the furlough jobs scheme and a cut to universal credit by £20 a week.

There are also concerns that some industries are still being hit disproportionately by the fallout from Covid, with the entertainment and travel industries still making heavier use of the furlough scheme than other sectors. The number of people being paid through the UK scheme stood at 1.9 million at the end of June and it is due to close at the end of next month.

Huge uncertainty remains over the economy’s direction in the next six months. While confidence has risen, there are warnings over complacency. Former prime minister Gordon Brown, who founded the Alliance for Full Employment group to promote jobs protection and work creation programmes, said “a new jobs crisis point is approaching as furlough ends”.

He called for the government’s Kickstart and Restart jobs schemes to be expanded dramatically in preparation. He said they were needed to “cope with the one million young people not in work and the one million people leaving furlough”. The TUC also urged the creation of a permanent short-time working scheme.

Peter Lambert, one of the authors of the POID research, said the end of the furlough scheme would be “an inflection point” where the economy could go either way. He added: “I think there will probably need to be some continuation of support in specific sectors. My bet is there’ll be more targeted support, because unless the economy really, really picks up, there’s going to be lots of people still left in the lurch in specific sectors.”

There are also concerns over the impact on families switching from furlough support to universal credit, especially as the £20-a-week increase brought in at the start of the pandemic is to be withdrawn this autumn.

The move from furlough on to universal credit will create a significant income shock for some. The difference could be as much as £2,304 a month for a couple who had both been furloughed, according to the Policy in Practice consultancy. It also found that the loss of the £20 weekly increase would mean 683,000 households, covering 824,000 children, will no longer be able to meet their essential costs.

Changes are also being made to the universal credit system that will affect the self-employed. The reintroduction of the so-called “minimum income floor” could see some households lose £771 a month.

Deven Ghelani, chief executive of Policy in Practice, called for a rethink. “By removing the pandemic’s protective measures too early, the government is introducing an autumn of income shocks to families who depend on this support.”

Jack Leslie, senior economist at the Resolution Foundation, said the course of the pandemic remained the “biggest question mark” over the course of the economy. “The cut to universal credit for 4 million families in the UK will have a really big impact on those individual families, but also on the economy as a whole,” he said. “If we see there are more spending reductions in the budget, that could pose some material headwinds to economic recovery.”

A Treasury spokesperson said: “We deliberately went long with our support to provide certainty to people and businesses over the summer; and that support is continuing with reduced business rates and cuts to VAT in place until March 2022, and the furlough scheme running until the end of September.

“The universal credit uplift was always intended to be a temporary measure to help households through the pandemic, but we are continuing to support people and ensure they have the skills and opportunities they need to get great jobs. We’ve invested billions in our Plan for Jobs, which is already getting people back into employment … and businesses can also continue to access other support including our Recovery Loan scheme.”

Comments

The World’s Oldest Living Olive Tree is on Crete

The most ancient olive tree in the world, in Crete. Credit: Dimitra Damian/Greek Reporter The oldest olive tree in the world is located in the village of Ano Vouves of Kissamos in Chania, Crete. The ancient tree is 3000 years old, as determined by the international scientific community. The ancient olive tree in Vouves has a trunk with a circumference of 12.5 meters (41 feet), and a diameter of 4.6 meters (15 feet). It belongs to the local tree variety of tsounati, and was grafted at a height of 3 meters onto a wild olive tree. Because of the grafting, its trunk has been so beautifully shaped by nature that it resembles a sculpture. In 1990, after a unanimous decision in the prefecture of Chania, the Vouves Olive Tree was declared a Natural Monument of great importance due to its status as the world’s oldest tree of its kind. The oldest olive tree still produces high-quality olives The fruits of the ancient olive tree make the best olive oil in the world, making the area...

Inside the Magnificent Minoan Palace of Knossos in Crete

The Minoan palace at Knossos. Credit: Gary Bembridge /Wikimedia Commons/ CC-BY-2.0 The Palace of Knossos, located about five kilometers (three miles) south of Heraklion on Kephala hill, was the largest of all the Minoan palaces in Crete. It was also at the core of the highly sophisticated civilization that flourished on the island over 3,500 years ago. The discovery of the Minoan Palace of Knossos The discovery and subsequent excavation of the palace dates back to the beginning of the twentieth century. Before then, Knossos had only served as a place mentioned in Greek mythology. The first modern scholar to take a serious interest in the area was the German Heinrich Schliemann, who in 1870 had excavated the site believed to be Troy. Schliemann was certain that a major Minoan palace lay hidden near Heraklion, but the Ottoman authorities who still ruled the island at the time denied any permission to dig there. Years afterward, the British archaeologist Arthur Evans, inspired b...

Ten Unforgettable Things to Do Around Syntagma Square in Athens

Syntagma Square, Athens. Credit: Public Domain Syntagma Square has literally been the very heart of Athens ever since the city became the capital of the modern Greek state. With the Greek Parliament building and the Tomb of the Unknown Soldier looming over it, it is rich with history and is the place where most major events of the last two centuries have taken place. Its name in Greek means “Constitution Square,” a name granted by Greece’s first modern royal, King Otto, on September 3, 1843, after an uprising of the people. This was a smart political move, since the royal palace overlooked the square. In 1934, the royal palace was turned over to the Greek Parliament, and ever since that time, Syntagma Square has been the place where all public protests and demonstrations have taken place. Syntagma Square home to historic demonstrations and protests In December of 1944, just after the departure of the occupying Nazi troops, a people’s rally at the square was marred b...

The Greek Who Taught the Japanese to Eat Feta Cheese and Olive Oil

Credit: Facebook/ Thanasis Fragkis Pioneering businessman Thanasis Fragkis was the very first person to introduce olive oil and other traditional Greek products to Japan more than a decade ago. Olive oil, wine, feta cheese and Greek yogurt, relatively unknown food items to this Far Eastern country, are now being enjoyed as the great gourmet delicacies they are. Speaking to Greek Reporter from his home in the town of Mito, around 120 km (76 miles) north of Tokyo, Fragkis was justifiably proud of his achievement. “We have taught the Japanese to eat olive oil, cheeses, including feta, yogurt that were not part of their diet. They hardly knew of olive oil,” he says in wonderment. Originally from the town of Kymi on the island of Evia, Fragkis emigrated to England, where he met his future wife, who is Japanese. “When we got married we thought ‘you are Japanese, I am Greek, what is the point of living in England?’. Greece was a difficult place to start a business in at the ti...

Water Shortages On Islands Plaguing Greece This Summer

Tap water is a precious commodity on the Greek islands and one that is in short supply. Credit: Ishwah Murth Creative Commons Attribution-Share Alike 4.0 Island water shortages and stoppages are plaguing Greece this summer. Promoted for its beautiful seawater surrounding all the Greek isles and its entire coastline, many islands are suffering from a lack of quantity — and quality of tap water. Turning on the tap and finding an abundant flow of water has become a basic expectation in civilized society of the 21st century, particularly when you are on a vacation that is meant to offer a bit of away-from-home luxury. However, on some Greek islands, access to whiskey is easier to come by than water. Greek island water shortages and water stoppages are common nowadays. Carol Berkley, from London, who is vacationing at an AirBnB property in the area of Marathi on Mykonos told Greek Reporter, “We had just come back from the beach. There are four of us here on the property....

Άρης: «Είναι ωραία στη 2η θέση, είναι και δίκαιο»

Έχοντας σε μεγάλη μέρα τον Κρίστιαν Γκάνεα, ο οποίος πέτυχε ένα γκολ και μοίρασε άλλο ένα, ο Άρης επικράτησε 3-0 του Ατρομήτου και βρέθηκε ξανά στην δεύτερη θέση της βαθμολογίας και πλέον ρίχνει το βάρος στο παιχνίδι Κυπέλλου που ακολουθεί με τον Ολυμπιακό στο Βικελίδης. Ο Άρης έδιωξε με εντυπωσιακό τρόπο μια κατάρα δέκα χρόνων απέναντι στους Περιστεριώτες, καθώς επικράτησε του Ατρομήτου 3-0 στο «Κλεάνθης Βικελίδης» χάρη στα τέρματα των Γκάνεα, Σάσα και Σίλβα. Με τη λήξη της αναμέτρησης οι «κιτρινόμαυροι» χτύπησαν στα social media για τη νίκη επί των Περιστεριωτών και τη συνέχεια σε Πρωτάθλημα και Κύπελλο: «Είναι ωραία στη 2η θέση. Είναι και δίκαιο. Δεν σταματάμε...».

Έκανε το εμβόλιο της Johnson και δεν μπορεί να περπατήσει

Την περιπέτειά του μετά από τον εμβολιασμό του με το σκεύασμα της Johnson & Johnson περιγράφει μέσω του Instagram o Γιώργος Βαγιαννίδης. Όπως αναφέρει στην ανάρτησή του, έκανε το εμβόλιο την 1η Σεπτεμβρίου και σήμερα νοσηλεύεται σε νοσοκομείο αφού δεν μπορεί να σταθεί όρθιος, ούτε να περπατήσει. Μάλιστα δημοσιεύει και φωτογραφίες από το νοσοκομείο. Δείτε αναλυτικά όλα όσα αναφέρει στην ανάρτησή του: Καλησπέρα σας, ονομάζομαι Γεώργιος Βαγιαννίδης. Επειδή τον τελευταίο καιρό έχουν ακουστεί πολλά, οφείλω να ξεκαθαρίσω τη θέση μου, για να μην υπάρχουν περαιτέρω αερολογίες σχετικά με την κατάσταση της υγείας μου. Τετάρτη, 1 Σεπτεμβρίου, έκλεισα το ραντεβού για τον εμβολιασμό μου (Johnson’s and Johnson’s). Να τονίσω πως ήταν καθαρά δική μου επιλογή και ΚΑΝΕΝΑΣ δε μου προέτρεψε να το κάνω. Πήγα λοιπόν στο ΓΝ Κατερίνης και το έκανα. Όλα αυτά γύρω στις 16.00. Πολύ τυπικά τα πράγματα. Το μόνο που μου είπαν είναι «Περίμενε...

Κορονοϊός Ινδία: Για πρώτη φορά πάνω από 50.000 κρούσματα σε ένα 24ωρο

Η Ινδία ανακοίνωσε σήμερα, Πέμπτη 30 Ιουλίου, πάνω από 50.000 νέα ημερήσια κρούσματα για πρώτη φορά, λόγω της αύξησης των μολύνσεων στις μη αστικές περιοχές σε μια περίοδο κατά την οποία η κυβέρνηση χαλαρώνει περαιτέρω τους περιορισμούς στις μετακινήσεις και το εμπόριο. Το τελευταίο 24ωρο καταγράφηκαν 52.123 νέα κρούσματα, σύμφωνα με τα στοιχεία των ομοσπονδιακών αρχών υγείας, με τον συνολικό αριθμό των κρουσμάτων να φθάνει σχεδόν το 1,6 εκατομμύριο. Το ίδιο διάστημα, 775 άνθρωποι έχασαν τη ζωή τους λόγω του κορονοϊού, με τον συνολικό αριθμό των θανάτων να πλησιάζει τους 35.000 –που αν και είναι χαμηλός συγκριτικά με τον συνολικό αριθμό των κρουσμάτων, δεν εμφανίζει ιδιαίτερες τάσεις επιβράδυνσης. Ενώ οι μεγάλες πόλεις, όπως το Νέο Δελχί και το Μουμπάι, καταγράφουν επιβράδυνση στον αριθμό των κρουσμάτων, τα περιστατικά στις αγροτικές περιοχές συνεχίζουν να αυξάνονται με αλματώδεις ρυθμούς, προκαλώντας ιδιαίτερη ανησυχία στους ειδικούς που φοβο...

The Mystery of the Oldest Throne in Europe at the Palace of Knossos

Photo: Olaf Tausch /Wikimedia Commons/ CC BY 3.0 In the palace of Knossos in Crete, at the centre of Minoan civilization, a magnificent throne room built during the 15th century BC is considered the oldest such room in Europe. Knossos flourished for approximately two thousand years. It had large palace buildings, extensive workshop installations and luxurious rock-cut cave and tholos tombs. As a major center of trade and the economy, Knossos maintained ties with the majority of cities in the Eastern Mediterranean. The palace was a great labyrinthine complex of 20,000 meters in length, a ceremonial, religious and political center that reflected great wealth, power, and highly advanced architecture. It was based around a central courtyard with more than one thousand interlinked, maze-like halls and chambers. An artist’s recreation of the Palace of Knossos. Photo: Mmoyaq/Wikimedia commons/ CC BY-SA 3.0 The throne room was unearthed in 1900 by British archaeologist Arthur Ev...

A Carefree Sustainable Vacation Awaits You at the Byzantine Mansion Turned Hotel in Monemvasia

A Byzantine-era mansion turned hotel a few kilometers away from the magnificent castle of Monemvasia has opened its doors for the Summer of 2020, as Greece is gradually relaxing its Covid-19 restrictions. Kinsterna Hotel is a model of autonomy and sustainability, functioning harmoniously within a rich and lively natural environment. But more importantly, it adheres to all health and safety regulations and it’s size enables social distancing, which is of paramount importance in the coronavirus times. Tables in the spacious gardens have been placed at a distance from each other as well as the deck chairs next to the pool. Privacy, cleanness, and social distancing are the major preoccupation of the owners of this gem of a hotel. It is the ideal launching pad for discovering the amazing rock of Monemvasia. A small island connected to the mainland town by a 400-meter causeway. The surviving buildings and defensive structures of the fortress include impressive rampar...

Qoutes

Search This Blog