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U.K. Economic Scars Emerge With Jobless Excluded From Benefits

  • At least 10% of workers unable to tap most lucrative benefits
  • Drag from hidden unemployment contrasts with BOE’s outlook
London's Oxford Street Faces ‘Boarded Up’ Future
Photographer: Jason Alden/Bloomberg

More than 10% of the U.K. workforce is out of a job and struggling to tap government benefits, exposing economic scars set to remain long after the coronavirus fades.

About 3.8 million people including actors and musicians in London’s famous theaters don’t qualify for the most lucrative welfare payments, according to the Standard Life Foundation, which campaigns for those on low and middle incomes. They’ve slipped through the cracks during lockdowns because of strict rules that filter out the self employed, contractors and people with patchy work histories.