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InstaForex

June 30, 2021

Delta Variant Explosion Threatens UK Economic Recovery

 The spread of Delta variants that are increasing infection rates will lead to Britain’s economic recovery under pressure, especially amid labor shortages and longer coronavirus restrictions.


Daily cases of coronavirus have increased significantly over the past month, driven by increased transmission of Delta variants, forcing the government to postpone plans to ease pandemic sanctions in England for four weeks until July 19th.


However, thanks to a robust vaccination program, the rate of hospital admissions and deaths can be reduced even though daily cases hit their highest level since January.



With the employment subsidy scheme set to change from July 1 despite the extension of sanctions, the job market is likely to be affected.


If in the past, the government paid 80% of employees ’salaries, in July the government would only pay 70% of wages, and employers would have to pay another 10%, making employees with 80% of their previous salaries.


In August and September, the government will pay 60% and employers 20% of employees' salaries, before it is completely terminated in September.


Employers and companies have warned that cutting the subsidy scheme would jeopardize Britain’s jobs and economic recovery, especially when employment rates are still below pre-pandemic levels.