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Eat Out to Help Out

April 08, 2024

Eat Out to Help Out was a British government scheme to support and create jobs in the hospitality industry to counter the economic impacts of the COVID-19 pandemic.[1][2] The scheme involved the government subsidising food and non-alcoholic drinks at participating cafes, pubs, and restaurants at 50%, up to £10 per person (per order). The offer, announced in July 2020, was available during the month of August 2020, from Monday to Wednesday each week.[3][2]

Diners at a restaurant in London in August 2020, when the Eat Out to Help Out scheme was in place.

In total, the scheme subsidised £849 million across 160 million subsidised meals.[2][4] Some consider the scheme to be a success in boosting the hospitality industry,[5] while others disagree.[6][7] A 2021 study found that the scheme contributed to a rise in COVID-19 infections.[2][8]

Background edit

Further information: COVID-19 pandemic in the United Kingdom and Economic impact of the COVID-19 pandemic in the United Kingdom

The COVID-19 pandemic resulted in a significant economic impacts, especially in the hospitality sector, due to a decline in tourism and leisure activities. Many sectors were ordered to close and the public to stay at home to reduce the spread of COVID-19 during lockdowns. Changes in consumer behaviour during the pandemic also resulted in the hospitality sector continuing to suffer losses after lockdowns were lifted. The Eat Out to Help Out scheme was designed to increase demand in the hospitality industry and encourage spending consumer behaviours.[2]

Scheme and impact edit

The scheme was announced by Rishi Sunak, the Chancellor of the Exchequer, on 8 July 2020 as part of the British government's Plan for Jobs strategy.[1][9] It involved the government subsidising food and non-alcoholic drinks at participating cafes, pubs, and restaurants, where the food and drinks were consumed on the premises. The subsidy was for 50% of the order, up to £10 per person (per order). The offer was available from 3 to 31 August, from Monday to Wednesday each week.[2][3][10] There were no limits on how many times an individual could use the discount.[1]

The scheme led to a significant increase in restaurant visits during August, which were greater than the visits during the corresponding period a year prior (in August 2019).[2] Participation in recreational activities was also increased by 5–6% on the days the scheme was active.[10] Staff recruitment in the food service industry–measured by job postings–had increased by 7% to 14%, an increase not detected in other industries.[10]

Regions where the scheme was utilised more frequently saw a rise in COVID-19 infections. After the scheme ended, infections in these regions had notably decreased. A 2021 academic paper suggested the scheme may have been responsible for “between 8–17% of all newly detected COVID-19 infections (and likely many more non-detected asymptomatic infections) in late summer”.[2] Two papers suggested that positive economic impacts were not sustained after the scheme had ended.[2][10]

Further lockdowns were introduced later in 2020 after the scheme ended in response to an increase in COVID-19 infections, which forced many hospitality venues to close once again.[2]

On The Andrew Marr Show on 4 October 2020, Johnson acknowledged the possibility that "Eat Out to Help Out" could have helped spread COVID-19, saying:

I also think that it is important now, irrespective of whether Eat Out To Help Out you know, what the balance of there was, it unquestionably helped to protect many… there are two million jobs at least in the hospitality sector. It was very important to keep those jobs going. Now, if it, insofar as that scheme may have helped to spread the virus, then obviously we need to counteract that and we need to counteract that with the discipline and the measures that we’re proposing. I hope you understand the balance we’re trying to strike.[11]

The 2021 academic study said "EOHO scheme may have contributed to indirect economic and public health costs that vastly outstrip its short-term economic benefits"[2]

John Edmunds of the London School of Hygiene and Tropical Medicine, a member of the Sage committee of advisers during the pandemic described the scheme as "a spectacularly stupid idea and an obscene way to spend public money".[12] At the COVID-19 enquiry, Edmunds stated that he was still angry about the scheme and that while it did not cause the second wave of COVID-19, it "encourage[d] people to take an epidemiological risk".[13]

See also edit

References edit

  1. ^ a b c Hutton 2020.
  2. ^ a b c d e f g h i j k Fetzer 2021.
  3. ^ a b "Eat Out to Help Out launches today – with government paying half on restaurant bills". GOV.UK. 3 August 2020. from the original on 23 January 2021. Retrieved 22 December 2020.
  4. ^ Ng, Kate (25 November 2020). "Businesses claimed £849m through Eat Out to Help Out scheme for 160 million meals". The Independent. from the original on 25 November 2020. Retrieved 22 December 2020.
  5. ^ Barrie, Josh (9 September 2020). "Eat Out to Help Out scheme has already made back half the money the Government spent on it". inews.co.uk. from the original on 1 November 2020. Retrieved 22 December 2020.
  6. ^ Inman, Phillip (1 October 2020). "'Eat out to help out' did not boost hospitality sector finances – poll". The Guardian. ISSN 0261-3077. from the original on 21 December 2020. Retrieved 22 December 2020.
  7. ^ "Eat Out to Help Out scheme had a 'limited effect on the UK's restaurants and cafes'". 10 February 2021. from the original on 2021-02-25.
  8. ^ Ross, Tim (4 October 2020). "Boris Johnson Says 'Eat Out' Drive May Have Spread Covid in U.K." Bloomberg. Retrieved 18 July 2021.
  9. ^ "Chancellor's Plan for Jobs to help the UK's recovery". GOV.UK. Retrieved 2022-01-12.
  10. ^ a b c d González-Pampillón, Nunez-Chaim & Ziegler 2021.
  11. ^ Mills, Jen (2020-10-04). "Boris Johnson admits 'Eat Out to Help Out' could have helped spread Covid". Metro. Retrieved 2023-03-04.
  12. ^ McKie, Robin; Helm, Toby (2023-06-03). "Sunak under fire as 'stupid' Eat Out to Help Out scheme to be focus of Covid inquiry". The Observer. ISSN 0029-7712. Retrieved 2023-06-03.
  13. ^ Walker, Peter; Walker (19 October 2023). "Science adviser referred to Rishi Sunak as 'Dr Death', Covid inquiry hears". The Guardian. Retrieved 20 October 2023.

Sources edit

  • Fetzer, Thiemo (26 October 2021). "Subsidising the spread of COVID-19: Evidence from the UK'S Eat-Out-to-Help-Out Scheme*". The Economic Journal. 132 (643): 1200–1217. doi:10.1093/ej/ueab074. ISSN 0013-0133. PMC 8574521.
  • Hutton, Georgina (22 December 2020). Eat Out to Help Out Scheme (PDF) (Report).
  • González-Pampillón, Nicolás; Nunez-Chaim, Gonzalo; Ziegler, Katharina (February 2021). Recovering from the first Covid-19 lockdown: Economic impacts of the UK's Eat Out to Help out scheme (PDF) (Report).

External links edit

  • A Plan for Jobs 2020: Policy paper

April 08, 2024
help, british, government, scheme, support, create, jobs, hospitality, industry, counter, economic, impacts, covid, pandemic, scheme, involved, government, subsidising, food, alcoholic, drinks, participating, cafes, pubs, restaurants, person, order, offer, ann. Eat Out to Help Out was a British government scheme to support and create jobs in the hospitality industry to counter the economic impacts of the COVID 19 pandemic 1 2 The scheme involved the government subsidising food and non alcoholic drinks at participating cafes pubs and restaurants at 50 up to 10 per person per order The offer announced in July 2020 was available during the month of August 2020 from Monday to Wednesday each week 3 2 Diners at a restaurant in London in August 2020 when the Eat Out to Help Out scheme was in place In total the scheme subsidised 849 million across 160 million subsidised meals 2 4 Some consider the scheme to be a success in boosting the hospitality industry 5 while others disagree 6 7 A 2021 study found that the scheme contributed to a rise in COVID 19 infections 2 8 Contents 1 Background 2 Scheme and impact 3 See also 4 References 5 Sources 6 External linksBackground editFurther information COVID 19 pandemic in the United Kingdom and Economic impact of the COVID 19 pandemic in the United Kingdom The COVID 19 pandemic resulted in a significant economic impacts especially in the hospitality sector due to a decline in tourism and leisure activities Many sectors were ordered to close and the public to stay at home to reduce the spread of COVID 19 during lockdowns Changes in consumer behaviour during the pandemic also resulted in the hospitality sector continuing to suffer losses after lockdowns were lifted The Eat Out to Help Out scheme was designed to increase demand in the hospitality industry and encourage spending consumer behaviours 2 Scheme and impact editThe scheme was announced by Rishi Sunak the Chancellor of the Exchequer on 8 July 2020 as part of the British government s Plan for Jobs strategy 1 9 It involved the government subsidising food and non alcoholic drinks at participating cafes pubs and restaurants where the food and drinks were consumed on the premises The subsidy was for 50 of the order up to 10 per person per order The offer was available from 3 to 31 August from Monday to Wednesday each week 2 3 10 There were no limits on how many times an individual could use the discount 1 The scheme led to a significant increase in restaurant visits during August which were greater than the visits during the corresponding period a year prior in August 2019 2 Participation in recreational activities was also increased by 5 6 on the days the scheme was active 10 Staff recruitment in the food service industry measured by job postings had increased by 7 to 14 an increase not detected in other industries 10 Regions where the scheme was utilised more frequently saw a rise in COVID 19 infections After the scheme ended infections in these regions had notably decreased A 2021 academic paper suggested the scheme may have been responsible for between 8 17 of all newly detected COVID 19 infections and likely many more non detected asymptomatic infections in late summer 2 Two papers suggested that positive economic impacts were not sustained after the scheme had ended 2 10 Further lockdowns were introduced later in 2020 after the scheme ended in response to an increase in COVID 19 infections which forced many hospitality venues to close once again 2 On The Andrew Marr Show on 4 October 2020 Johnson acknowledged the possibility that Eat Out to Help Out could have helped spread COVID 19 saying I also think that it is important now irrespective of whether Eat Out To Help Out you know what the balance of there was it unquestionably helped to protect many there are two million jobs at least in the hospitality sector It was very important to keep those jobs going Now if it insofar as that scheme may have helped to spread the virus then obviously we need to counteract that and we need to counteract that with the discipline and the measures that we re proposing I hope you understand the balance we re trying to strike 11 The 2021 academic study said EOHO scheme may have contributed to indirect economic and public health costs that vastly outstrip its short term economic benefits 2 John Edmunds of the London School of Hygiene and Tropical Medicine a member of the Sage committee of advisers during the pandemic described the scheme as a spectacularly stupid idea and an obscene way to spend public money 12 At the COVID 19 enquiry Edmunds stated that he was still angry about the scheme and that while it did not cause the second wave of COVID 19 it encourage d people to take an epidemiological risk 13 See also editBritish government response to the COVID 19 pandemicReferences edit a b c Hutton 2020 a b c d e f g h i j k Fetzer 2021 a b Eat Out to Help Out launches today with government paying half on restaurant bills GOV UK 3 August 2020 Archived from the original on 23 January 2021 Retrieved 22 December 2020 Ng Kate 25 November 2020 Businesses claimed 849m through Eat Out to Help Out scheme for 160 million meals The Independent Archived from the original on 25 November 2020 Retrieved 22 December 2020 Barrie Josh 9 September 2020 Eat Out to Help Out scheme has already made back half the money the Government spent on it inews co uk Archived from the original on 1 November 2020 Retrieved 22 December 2020 Inman Phillip 1 October 2020 Eat out to help out did not boost hospitality sector finances poll The Guardian ISSN 0261 3077 Archived from the original on 21 December 2020 Retrieved 22 December 2020 Eat Out to Help Out scheme had a limited effect on the UK s restaurants and cafes 10 February 2021 Archived from the original on 2021 02 25 Ross Tim 4 October 2020 Boris Johnson Says Eat Out Drive May Have Spread Covid in U K Bloomberg Retrieved 18 July 2021 Chancellor s Plan for Jobs to help the UK s recovery GOV UK Retrieved 2022 01 12 a b c d Gonzalez Pampillon Nunez Chaim amp Ziegler 2021 Mills Jen 2020 10 04 Boris Johnson admits Eat Out to Help Out could have helped spread Covid Metro Retrieved 2023 03 04 McKie Robin Helm Toby 2023 06 03 Sunak under fire as stupid Eat Out to Help Out scheme to be focus of Covid inquiry The Observer ISSN 0029 7712 Retrieved 2023 06 03 Walker Peter Walker 19 October 2023 Science adviser referred to Rishi Sunak as Dr Death Covid inquiry hears The Guardian Retrieved 20 October 2023 Sources editFetzer Thiemo 26 October 2021 Subsidising the spread of COVID 19 Evidence from the UK S Eat Out to Help Out Scheme The Economic Journal 132 643 1200 1217 doi 10 1093 ej ueab074 ISSN 0013 0133 PMC 8574521 Hutton Georgina 22 December 2020 Eat Out to Help Out Scheme PDF Report Gonzalez Pampillon Nicolas Nunez Chaim Gonzalo Ziegler Katharina February 2021 Recovering from the first Covid 19 lockdown Economic impacts of the UK s Eat Out to Help out scheme PDF Report External links editA Plan for Jobs 2020 Policy paper Retrieved from https en wikipedia org w index php title Eat Out to Help Out amp oldid 1189711813, wikipedia, wiki, book, books, library,

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