Tag Archives: pandemic

News

Manufacturers looking for long-term measures from the government (Authored by Kunal Sawhney, CEO, Kalkine)

The United Kingdom has a vast and vivid manufacturing sector, including various industries like electricity, water, mining, oil & gas, and many more. As per industry body Make UK, the current annual output of the UK’s manufacturing sector is about £183 billion, and it continues to maintain its position as the ninth-largest manufacturing country globally.

However, the industry has been going through a crisis due to rising inflation, and the businesses within it are facing growing pressures due to the rise of input costs and supply chain disruptions. Manufacturing is severely impacted by high energy and commodity costs. At the same time, finding talent has become a major challenge, with vacancies at record levels, at 4.1 vacancies per 100 jobs. According to ONS data, as on 10 June 2022 number of online job adverts was the weakest in the manufacturing sector when compared with three weeks ago, among all the major industries.

Pandemic and its impact on manufacturing

The COVID-19 pandemic had impacted almost all the sectors and manufacturing was among the severest hit with a significant reduction in the output in 2020. As per ONS data (Office for National Statistics), the total value of the UK’s manufacturing product sales declined by 10.8% to £358.7 billion in 2020 compared to £402.2 billion in the previous year.

While almost all the manufacturing divisions witnessed a decline in sales, the manufacturing of pharmaceuticals and paper and paper products witnessed modest improvement during the period. However, once the restrictions started easing, the output value of the sector began returning to normal despite high prices and supply chain bottlenecks, and it was being expected that things would be back on track by the end of 2022.

All the high hopes to see a turnaround by the year-end were dashed amid a worsening cost-of-living crisis. Producers of consumer goods struggled to raise the demand as households face surging energy bills and there is a continuous decline in consumer confidence.

The latest data revealed that British manufacturing activity expansion was weakest in May 2022 since January 2021 at 54.6. It clearly shows the squeeze on household finances and the risk of recession weighing on the minds of consumers. For yet another month, costs paid by manufacturers and selling prices witnessed a rise in May.

What is the sector asking for?

The Q2 survey report of Make UK/ BDO has revealed that investment has taken a big hit, and companies have been deferring or shelving their plans to maintain their cash flow, amid weakening consumer confidence with growth and orders showing a sharp decline. Exports are still not showing any signs of sustainable recovery.

Rapidly rising input costs may not leave the manufacturers to continue till Autumn, when Chancellor Rishi Sunak had promised help during the Spring Statement. The prevailing situation calls for an immediate and urgent need for help for the manufacturers, keeping in view the grim outlook for the next six months.

As per Make UK, manufacturers are now not looking at any short-term measures and would rather expect the government to focus more on business and foreign investors, which could portray the country in a more serious manner with a long-term vision.

  • Manufacturers have been asking the government to either remove or reduce the business rates for the coming one year.
  • SMEs should be provided with a waiver of VAT, while large businesses can be given some deferrals.
  • There has been a demand for the extension of the super-deduction investment policy, a means that allowed the businesses to claim a much higher tax deduction in the tax year of purchase for qualifying equipment compared to what it could have been normally.
  • The climate change levy should be stopped for the time being, and if the energy cost continues its rising spree, it should be completely abolished.
  • There is also demand from the manufacturers to make the increase in AIA (Annual Investment Allowance) permanent. Late last year, the government had temporarily increased the AIA from £200,000 to £1,000,000 for a qualifying outlay on plant and machinery.
News, Sports Tech

Consumer experience takes centre stage as sports broadcasters’ investment budgets bounce back from pandemic lull

The new research, in partnership with IABM, found that while the number of companies making low level investments was still higher than pre-pandemic levels, mid-range and high levels of investment are on the rise

Tuesday 24th May, Oslo, Norway — Appear, the global leader in media processing and delivery technology, has launched its latest 360° report, The impact of COVID-19 on sports broadcasting technology investments.

The report, produced in partnership with IABM, investigated the monetary investments sports broadcasters made before and during the pandemic and found that in 2022, 73% of sports broadcasters stated that they expect their investment budget to increase compared to 2021, while none expect their budgets to decrease. Following healthy levels of investment in 2019, 2020 saw budgets frozen or reduced for over half (53%) of sports broadcasters. 2021 then saw significantly more broadcasters investing over $501K in new technology to make up for lost ground.

Surveying broadcasters across the US and UK, the report found that while 2019’s most significant investment for sports broadcasters was in production equipment, the most popular investment in 2020 was predictably in remote production equipment. 2021 saw investments in lightweight compression take the top spot, and for 2022 we see cameras being touted as the top technology broadcasters are looking to upgrade.

Given the complications in getting staff on the ground because of the pandemic, the research points to the fact that investment in 2020 and 2021 was about firming up sports broadcasters’ infrastructure. Ensuring consistent access to content was the first priority, hence the strong investment in remote production equipment and lightweight compression tools. With cameras taking the top spot in 2022, the trend now seems to be about improving the quality of services having invested in robust infrastructures.

When asked explicitly about the main drivers behind these investments sports broadcasters said that they were to support the delivery of content to more viewers, and to enable new capabilities that would maintain competitive edge. The increased investments in cameras and encoders certainly aligns with these drivers.

Speaking on the research Thomas B. Jørgensen, CEO of Appear, said, “This research highlights a consistent theme we see with our customers, while there was a rush to adopt new technologies to keep the ship afloat among the troubled waters of 2020, there is recognised need to not just deal with today’s problems but to invest in tackling tomorrow’s.

“Sports broadcasting is a fiercely competitive field. Maintaining a distinct competitive advantage is key to thriving in it. Consumers don’t just want variety, they demand quality. Deloitte found that the single most important factor for sports fans is the quality of the broadcast or stream. Investments in 2020 and 2021 were about getting that content to viewers, while 2022 looks to be all about improving the quality and experience for audiences.”

“The report on sports broadcasting technology investment, produced by Appear in partnership with IABM, shows an industry that is back to natural evolution after the exceptional innovation driven by pandemic-induced disruption,” said Lorenzo Zanni, Head of Knowledge at IABM. “Investment in technologies such as new image capture has returned, but the report also shows that the big shift to remote production necessitated by the pandemic has become permanent and fundamentally changed some technology investment priorities.”

The full 360° report, The impact of COVID-19 on sports broadcasting technology investments, is now available to download here: https://content.appear.net/appear360_lp-sport

News, Wellbeing

I miss you! A new wellbeing crisis on the horizon

  • New global research from Inspiring Workplaces Group discovered that:
    • We miss or need social human interaction – 88%
    • We are struggling even more than before with creating boundaries between work and home life – 74%
    • The events of the past two years have created a binary impact on wellbeing with almost the same number of respondents reporting a positive and negative impact on their wellbeing
    • 98% of the IW community feel that they can be their true selves – fostering psychological safety within their organisations
  • The InspireWork Summits announces headline partnership with The STM Group for both London and NYC

London and New York: April 5, 2022 – New global perspectives report from Inspiring Workplaces highlights the twin threats to wellbeing from a poor work:life balance and inadequate human interaction caused by the pandemic. In fact, 74% of respondents said they are struggling to maintain boundaries between home and work. And almost nine out of ten (88%) of respondents said they miss or need social human interaction from colleagues or customers.

The report entitled: I miss you! A new wellbeing crisis on the horizon, is published almost two years to the day when much of the world was first locked down. The report draws its responses from the Inspiring Workplaces global community. It has insights that will help give employees a voice and leadership a roadmap of areas to consider as we continue to navigate our way through the seismic changes caused by the pandemic. The most encouraging response in the report shows that 98% of the Inspiring Workplaces community feel that they can be their true selves at work – fostering psychological safety within their organisations

Five themes for creating an inspiring place to work

Respondents were also asked “What one thing can your employer do to help you this year?”

We consolidated the verbatim responses into five key themes below:

  1. Culture of wellbeing
  2. Community
  3. Structure
  4. Employee Voice
  5. Gratitude

Within the report we provide context to each of these themes, plus advice and opinion on how to approach them in 2022 and beyond.

Download the report for free here.

Matt Manners, CEO & Founder Inspiring Workplaces said “Our mission is to change the world by transforming the world of work. One way we do this is by providing our community with content that both inspires and instructs. We hope we have done so again with our first ever Global Perspectives report.”

In-person inspiration returns with the InspireWork Summits in London and New York City partnered by The STM Group

After a two year break caused by the pandemic, the InspireWork Summit, (formerly the Employee Engagement Awards Conference) return to London, New York and Sydney.

STM Group, a professional services marketing company, has agreed to be the headline partner in both London and New York.

Michael Gegg, STM Group said: “Working, as we do, with a broad range of clients gives us an interesting window into the world of work. We know that inspiring people post the Pandemic is going to be one of the most significant leadership challenges in the coming years. So, we are delighted to be sponsoring this conference. Matt and his team deserve a huge amount of credit for continuing to shine a light on this most important of conversations.”

Matt Manners, said: “We have always endeavoured to bring together the most inspirational and insightful content to our events whether it be case studies, thought leaders or best-selling authors. We now have an inspiring headline partner on both sides of The Atlantic too.

“It is our purpose to change the world by transforming workplaces and that starts with community and collaboration – so after three years away from in-person events we are intentionally keeping our prices low to do just that.”

Register for London here: https://www.inspiring-workplaces.com/inspire-work-summit-london/.

Register for NYC here: https://www.inspiring-workplaces.com/inspire-work-summit-nyc/.

The Summits will also be available online.

IT Services, News

A third of employers did not implement technology when adjusting to ‘new normal’, says TDM Group

New research from Managed Business IT Services provider (M-BiTS) TDM Group shows that 29% of businesses with a turnover of more than £500 million felt their employees had the right tools to navigate the pandemic, while only 20% of businesses with a turnover of between £10 million – £49.99 million felt the same.

The study was conducted across 152 C-level executives and 155 employees from UK-based companies with 250-500 employees in late 2021.

Tarek Meliti, CEO of TDM Group commented: “The startling aspect of these findings is the number of businesses within these brackets that don’t believe their employees had the right tools to navigate the pandemic. Unsurprisingly, it appears that businesses with a higher turnover were better placed to provide the necessary resources.

Business leaders from organisations of all sizes must learn from their experiences during this challenging and unprecedented period. This should be viewed as an opportunity for them to empower employees with new technology that they’re willing to embrace and will help the business achieve its goals. Rather than wasting time and money by implementing new technology for the sake of it.”

Meliti added: “Business leaders must also ensure the organisation’s mindset in adopting new technology through pandemic-fuelled necessity is harnessed to foster a culture that embraces innovation and drives future growth”.

This white paper highlights the barriers businesses have faced – and continue to face – when implementing technology amid change, both from the perspective of business leaders and employees. The research will help you understand everything from current attitudes towards digital transformation to the required staff training – all of which impacts the bottom line.

News

Human health and social work activities: Major catalyst of GDP growth

Written by Kunal Sawhney, CEO, Kalkine

It has been a positive surprise for the UK, Gross Domestic Product (GDP) made a bounce back to positive territory in January to 0.8 per cent after falling by 0.2% in the final month of 2021. The numbers are above the pre-Covid-19 levels of February 2020, and one of the major contributors to the high GDP growth was the unexpected rebound in food and drinks services of 6.8 per cent.

Though all the sectors contributed positively, it was the growth in services up 0.8 per cent, production up 0.7 per cent and construction up by 1.1 per cent, which is worth mentioning, while some lag was seen in activities like service and real estate.

Human health and social work sector

As per the data of the Office for National Statistics (ONS), the GDP growth during the period, February 2020 and January 2022 was majorly driven by human health and social work activities. This is the segment that has been in focus for the last two years. Statistics reveal that the number of workers suffering from work-related ill-health surged in 2020/21, which broadly remained flat before the coronavirus pandemic. Of the estimated 253,000 work-related ill health cases, almost half (49 per cent) constituted of stress, depression, or anxiety.

Health and social care sector play a vital role in nations’ development and growth, providing high-quality and sustainable care at the right time in the right place. Around 5 million people are employed in the sector.

The major industries which hold the highest level of concentration in Human Health and Social Work Activities include Hospitals, Learning Disability, Mental Health & Substance Abuse Facilities, and Corporate Wellness Services. If we dive deep into the industries in the segment, industries that have high-profit margins include health and wellness spas, followed by cosmetic surgeons’ clinics, corporate wellness services, and telehealth services.

Challenges and remedies

The sector played a crucial role in the unprecedented event of the Covid-19 pandemic. However, the pandemic also highlighted some chronic problems of the sector apart from the shortage of staff. The sector has witnessed a steady increase in the number of people employed, though it is confronted with many challenges. The sector needs special attention from the government as it has been at a faster pace compared to other sectors, while it is dominated by the female workforce but at the same time has been facing a gender pay-gap.

It has been historically proven that investments in the health care sector have considerable economic multiplier effects, which help in the growth of the broader economy. The sector serves all classes equally and is crucial for the unserved population, who, if not taken care of, cannot fully contribute to the economic growth.

Creating adequate work opportunities for the human health and social work sector plays a vital role in economic development, and the large deficits of adequate health worker requires a rejig of the current health employment policies to get optimal economic returns on investment in the sector.

News

Is rising business confidence a sign of ebbing economic uncertainty?

Written by Kunal Sawhney, CEO, Kalkine

As the pandemic impacts are slowly fading, the economy is gradually moving to normalcy with growing confidence among the businesses. The latest Lloyds Bank Business Barometer has shown improvements in both trading prospects and economic optimism, which has led the Business confidence in the country to bounce back to its highest level in five months. Lloyds Bank Business Barometer moved up by five points to 44%, with 10 out of 12 regions in the country reporting growth in the confidence.

The confidence surge was across the sectors with manufacturing and construction reaching their highest level since the start of the pandemic to 54% and 51% respectively, while the Retail confidence increased to 47% and Services confidence remained unchanged at 38%.

Business confidence, which measures a range of financial and economic aspects, is a key economic indicator giving an overview of how the businesses view the trade in the coming future based on production, orders, and finished goods in the sector. Businesses across the globe have been upbeat for the last some time with the hopes of recovery in the economy and continuously lower cases of covid.

The positive aspect of the business confidence growth is that it is has been on an upward trajectory with businesses remaining confident about their sales and hiring amid hopes of strong growth in the year ahead. However, there has been some uncertainty as well regarding overall economic conditions and prospects through the first half of the year, and now the geopolitical worries related to the Russia-Ukraine war are adding to it. The sales growth has been mainly on the domestic level, and the export growth is yet to reach the pre-pandemic levels yet, which may weigh on the confidence if the war escalates.

An interest rate hike could play the spoilsport

The optimism among the businesses is high, but at the same time, there is concern prevailing about the interest rate hike. Over one-third of firms (38%) surveyed by Llyods have raised their concern about interest rates rising to 1%. Inflation is at its record high and is likely to keep moving up with rising energy prices contributing the most in the coming month. Bank of England (BoE) has already raised interest rates twice, and there are expectations of a few more in near future.

It’s a common perception that higher interest rates would limit consumer spending as it increases the cost of borrowing and reduces disposable income; however, it also negatively impacts the business confidence with businesses taking less risk for investment and expansion.  Another factor is that higher interest rates usually lead to the strengthening of the currency, which not only makes imports cheaper but makes the export less competitive.

Confidence is rising but government support required

Business confidence is returning to the levels we had seen before the pandemic; however, staffing and inflation would be a major concern going forward. Businesses have been facing challenges of staff turnover since the pandemic. Manufacturers are struggling to get the required skill and simultaneously facing the pressure of retention, raising the input price inflation.

The business confidence index is primarily used to check growth and anticipate curves in economic activity; however, the war situation may alter the trajectory if the businesses become overtly cautious responding to slow spending of consumers or intent to save more depending on the duration of the war. Upbeat business confidence leads firms to spend more on investment and look for expansion and hire more people, with hopes of a sizeable future return. At a time when the economic growth has not been what was being expected, the geopolitical worries may dampen the sentiment. Businesses would expect a government grant rather than any form of a loan if the situation deteriorates from here, as loans would only reduce their future borrowing power and eventually the confidence.

News

Freelancers move from pandemic uncertainty to exploiting demand opportunity in UK

  • Initial uncertainty over finding work during the pandemic led to half of freelancers being concerned about their financial security
  • Nearly half (47%) of freelancers across the UK now seeing increased demand as a direct result of the pandemic and Great Resignation
  • Concerns remain for most vulnerable freelancers hit with higher living costs and tax rates after having to take on COVID relief grants

London, 15 February – New research from Worksome, the tech platform connecting businesses with freelancers, and IPSE, the Association of Independent Professionals and the Self-Employed, has today found that almost half of freelancers (47%) have become concerned with their financial security following the pandemic.

The Great Resignation, caused by months of remote working during the pandemic led many workers to reassess their careers, job satisfaction and resign in a large number of cases, which has had an interesting double effect on the freelance community.

Nearly half (47%) of freelancers across the UK saw an increased demand as a direct result. In terms of job roles, nearly one in six (15.8%) freelancers said that the pandemic directly led to them becoming a freelancer. Of these, almost six in 10 (57%) of former full time workers are earning more than before and nearly three quarters (74%) are happier.

The report also found that while the majority (55%) of freelancers were saving for a future period of no work during the pandemic, nearly one in ten (9%) were not saving at all. These freelancers could be particularly hard hit by higher tax rates for freelancers that have also taken on COVID relief grants on top of rising inflation and living costs.

Despite the rollout of the government’s Self-Employment Income Support Scheme (SEISS), almost a quarter (24%) of freelancers had to use most or all of their savings for everyday expenses, with nearly 1 in 5 (18%) using a credit card or overdraft to support themselves during COVID.

While 57% were still able to put aside savings for later life and retirement, 13% said debt taken on during the pandemic prevented them from saving for later life as much as they would like and 7% said debt meant they hadn’t been able to save at all.

Morten Petersen, CEO and Co-Founder, Worksome said: “While the freelance market may be buoyant again, it’s clear that the darkest days of the pandemic and lockdown will have an impact on the freelance community for years to come. It’s crucial for government, business and civil society to come together to support this group of crucial workers who were not necessarily supported as well financially during the pandemic as others. Meanwhile, unfair tax rules on COVID relief grants continue to penalise this group of often highly skilled workers who contribute £162bn to the UK economy.”

Andy Chamberlain, Director of Policy at IPSE said: “Today’s research paints a mixed picture of the self-employment landscape. While we at IPSE welcome the increase in demand and the shift from some full-time employees to freelance work, it is clear that COVID-19 has been devastating for contractors. After 11 years of continuous growth, the number of self-employed workers has fallen from 5 million in 2019 to 4.1 million in 2021. Moreover, for thousands of those that have remained as freelancers, they have lost work, fallen into debt and been severely impacted by the reforms to IR35 in April 2021.

“As we (hopefully) start to recover from the pandemic, the government needs to clear up the confusion around IR35 and help self-employed workers that have fallen into debt during lockdown.”

News

Increasing input costs lead to inevitable price hikes by businesses

Written by Mr. Kunal Sawhney, CEO, Kalkine Media

Rising inflationary pressure has become a worldwide phenomenon lately, and the UK economy has been suffering from the evils of inflation too. A 2% inflation target was set by the Bank of England (BoE) with an aim to maintain stability in the economy. However, this 2% target has been breached recently, with the Consumer Prices Index (CPI) going up by 5.1% in the 12 months to November 2021. After the inflation level of 5.2% recorded in September 2011, the highest recorded CPI 12-month figure, the BoE is estimating the inflation levels to reach approximately 6% by the spring of 2022.

Both households and businesses have taken the brunt of the pandemic, and even though the Government has stepped up and offered the necessary financial support, coping up with the financial squeeze has been difficult during these rough times. UK households have been dealing with higher food and utility bills, with many of the poorer ones falling into the trap of fuel poverty ahead of this winter.

To counter the impact of rising inflation and soaring prices, the BoE has recently increased the interest rates from 0.1% to 0.25%. The move to raise the interest rate was made for the first time in three years in response to the rapidly rising prices. In 2022, the rates are projected to rise further, with a 0.25% hike expected as early as February. When the inflation levels went up to 5% in 2011, the interest rates were maintained at historic lows, which proves that the BoE is in a weaker position at present. This may be true as the UK economy has been facing turbulence due to a combination of Brexit-related issues and Covid-related restrictions.

Price hike to impact all

The budget of the households has been impacted, the energy prices have been skyrocketing lately due to excessive demand for oil and gas across the globe, which has pushed up the energy prices. Supply chain issues have been further aggravating the problem of inflation, and with a shortage of labour, materials, and haulage services, the prices of goods have soared immensely. Amid all these issues, the Government’s withdrawal of various support measures from hard-hit businesses, like ending hospitality’s reduced VAT, has resulted in a greater rise in prices by businesses to cover their losses. The pandemic and Brexit have together made the recruitment of lorry drivers and hospitality staff quite difficult.

As the living standard of Britons is plummeting due to increasing inflationary pressure, the wage demand is likely to rise and potentially result in a wage/price spiral, which could have a detrimental impact on the economy. The current inflation level, which is already way above the target rate of BoE, has been making Britons more and more pessimistic about the UK possibly moving towards economic stagnation.

The increase in prices of goods is inevitable with the increasing cost of inputs and transportation, and this phenomenon will be witnessed across markets in 2022. With the new Omicron variant of coronavirus causing massive disruptions in the UK economy, it’s hard to predict what’s in store for the UK economy this year, but the rise in prices is certain in the current circumstances and common people, as well as business, will have to look for means to reduce its impact as much as possible.

News

UK manufacturing activity likely to improve further in 2022

Written by Mr. Kunal Sawhney, CEO, Kalkine Media

The manufacturing activity in the United Kingdom is likely to ameliorate further in the present calendar year as the pandemic-related hardships subside over the coming months. The domestic market sentiments have continued to improve in the terminal quarter of 2021, even as the Omicron-led fears forced the government of the UK to reimpose mask mandates, alongside some precautionary measures to contain the rate of infection.

Though the measures taken by the Downing Street administration have failed to help in lowering the rate of infection as the country reported record surges in daily infections with the daily count nearing 200,000.

With the onset of the new calendar year, the manufacturers are anticipating a fresh bounce back in the orders as existing challenges including the faltering supply chain and logistics activity, and short-staffed operations are expected to moderate further in the present quarter. On the other hand, the problem of higher input prices may stretch up to the first half of 2022 as the Bank of England has already warned that the rate of consumer price based inflation will peak in April of this year.

Given the persistent business environment due to the rapidly spreading Omicron variant and towering increases in the total number of infections on a daily basis, the enterprises handholding the growth of manufacturing sector may get affected if the government proceeds ahead with another nation-wide lockdown or strict set of reciprocatory measures including heightened border control, curtailed domestic movement and limiting the operations of local enterprises that have driven the major rise in the footfalls in the recent past.

If the government manages to bring down the rate of infection with the present set of restrictions then the manufacturers can swiftly escalate the rate of production, as a result of which national economic output can witness sustainable upsurge.

In the month of December 2021, the rise in number of new orders, production levels, along with the employment activity, collectively steered an increase in the factory activity with the Manufacturing PMI rising to 57.9. According to the seasonally adjusted data provided by IHS Markit/CIPS, the PMI remained above the mark of 50.0 for the 19th straight months as the overall pace of expansion improved to a four-month high.

However, the comprehensive pace of expansion was disturbed by the untimeliness of orders due to malfunctioned logistics systems and industry-wide limitedness of skilled workforce. The considerable increase in the levels of manufacturing output was thoroughly supported by the domestic enterprises as market operations of local enterprises continued to improve. The cross-border hardships were there as the new orders from overseas locations dropped for the fourth straight month, continuing the negative trend for export businesses.

According to the survey, the manufacturers have complained about the possibilities of further pandemic-induced restrictions, persisting post-Brexit difficulties and logistics challenges. All these factors combined once again hit the demand from overseas markets at the end of 2021. Nonetheless, the demand for capital goods manufactured in the UK from the international markets jumped at the sharpest pace since August of 2021.

Continuing the trend of an upbeat job market in the UK, the employment in the manufacturing sector of the UK surged for the 12th consecutive month in December, effectively the whole 2021 contributed towards employment growth. Though the rate of jobs growth remained near the three-month high figure realised in November of 2021.

Despite the partial subduedness in the market due to the unfavourable business conditions on the back of Covid activity, the majority of manufacturing corporations have maintained a positive outlook in the terminal phase of 2021. Approximately 63% of the enterprises are anticipating the production levels to increase in the upcoming 12-month stretch, while a meagre 6% have projected a contraction in the present calendar year.

As the companies increasingly passed on the pressure of higher input prices to the consumers, the rate of increases in the factory-gate prices jumped to a new series-record high in December of 2021.

The inflationary hurdles are expected to subside by the end of H1 2022, as a consequence of which the upcoming policy actions by the Bank of England, alongside the commentary by the Federal Open Market Committee of the US Federal Reserve will be keenly watched by the corporations, as well as the investors.

The companies have also remained optimistic, as far as the pre-decided investment is concerned and the apparent hopes of less disruption due to Covid-19 pandemic (SARS-CoV-2) virus, the cumulative aftereffects of Brexit, supply chain troubles and other operative challenges.

News

Vulnerable section to benefit from multiple monetary injections

Written by Mr. Kunal Sawhney, CEO, Kalkine Media

With the advent of the coronavirus pandemic, the world has experienced rumbling losses in terms of health, earnings, livelihood, connectivity and the ability to roam around freely. The pandemic restrictions, alongside massive lay-offs, pay cuts, increased spending on health and social care, surging utility bills amid huge rise in the energy prices and beaten-down rate of recovery has furthered the misery for many households, as well as people living far from their native places and hometowns.

The government of the United Kingdom has taken multiple measures to safeguard the interest of vulnerable people and communities during the pandemic, especially for the people who were left with no regular source of income.

The multi-month long furlough scheme has categorically supported the earnings for individuals, effectively assisting the businesses to maintain and retain the staff. The scheme primarily helped in ameliorating the rate of unemployment and the activity in the employment landscape. With the termination of the furlough scheme, the industries have been partly hit as they are now in position to cover up all the charges categorised as the employee benefit expenses.

Furthermore, the worries of people living on rent have slightly increased as they are no longer a part of the government-backed job support scheme, the programme that has comprehensively benefitted the households, minimising the job uncertainty at the same time.

The Downing Street administration has recently announced a multi-million support package, especially designed to cover the vulnerable renters still struggling due to the impact of Covid-19 pandemic.

As a part of the broader objective of diminishing the challenges for renters, a sum equalling £65 million has been set aside to provide support to low-income households. The Department for Levelling Up, Housing and Communities have been managing the fund, supervising the grants to vulnerable households that are grappling with the increased household expenses, while they service house rentals.

The multi-million funding has supplemented the £500 million monetary assistance announced by the government of the UK to help the vulnerable families with the essential products and services during the winter period.

The regional councils in England will be empowered through the funding to support the low-income households and people with truncated earnings to cover up the rent arrears, productively supporting the families while they bounce back to the pre-Covid levels and helping the nation to prevent the condition of homelessness.

The renters across the nation have been thoroughly protected by the support package to the tune of £400 billion during the heightened Covid activity. The government has time and again intervened to extend monetary support to the vulnerable section of the country.

The ban on evictions during the pandemic has been highly appreciated and a welcomed measure by the government, alongside this, other support measures has helped in ensuring that no one should suffer due to missed rent payments. As a result of comprehensive planning by the authorities, a maximum section of the households are up to date with the respective rent obligations.

Under the £65 million fund, the grants will be made available to the financially weaker section of the society, the vulnerable individuals staying on a rented accommodation and the people fearing the risk of eviction through the winter months. The households and persons worrying about the possibility of homelessness have been advised to contact their local councils for the proportionate support.

The low-income earners and the financially weaker households have been encountering unending troubles due to the severe repercussions of pandemic on health and wealth. As a consequence of continuing distress for the people, the multi-million funding facilitated by the government will help the vulnerable families look to fulfilling their near-term objectives of travel and shopping during the upcoming period of Christmas, while they continue to service the rental obligations.

The fallout of pandemic on the private rented sector with the lowest income and uncertain sources of income have immensely disturbed the financial position and spending capacity.

The announcement of such a package to support the weakest households with the monthly rental payments will benefit many. With the help of this package the government is intending to improve the financial prospects for low-income earners as it becomes really difficult to service the rent and manage other periodic expenses that increase with the commencement of winter season.

So far in 2021 itself, the government has already sanctioned a sum totalling £310 million to councils through the Homelessness Prevention Grant. The recent addition for averting the homelessness in winter season will increase the total amount by a further £65 million in the present calendar year.

Separately, the government has made available £140 million through the Discretionary Housing Payments. The sum has been judiciously utilised to prevent evictions, at a time when people lookout for new rental accommodation. This implies the comprehensive working model for the Downing Street administration as it subsidised the stamp duty for home buyers during the pandemic, and, on the other hand, the authorities made sure that people living in rental properties should remain in a position to fulfill their rental needs.

Under the umbrella of the £500 million Household Support Fund, the government has provided £421 million to assist the vulnerable individuals in England. As a part of this monetary injection, the devolved administrations were entitled to receive nearly £80 million.

During all of this, the landlords and the primary owners of the property have also proceeded hand-in-hand with the government’s objective to minimise the evictions and homelessness due to the hardships of the pandemic.

The multiple fundings are primarily utilised to support the households needs including the cost of essentials and other necessary requirements. Of the total monetary grant, nearly 50% of the funding has been reserved for the households and families with children.

As the country steps into the final stages of the apparent recovery process, the government has been doing the major bit to resurrect the confidence, identifying the best possible measures to support the vulnerable section. The additional fundings and specific monetary injections have thoroughly augmented and bolstered the existing lines of support being channelised through the government.