Coronavirus: UK rescue plan under strain as 1 million surge onto welfare

LONDON - Almost one million people have claimed"universal credit" welfare payments in the UK in the past two weeks, exposing the massive economic hit from Mr Boris Johnson's coronavirus lockdown.

The rise in claims will intensify the debate in the UK over the government's response to the crisis. Criticism has been growing over Mr Johnson's handling of the health emergency but until recently, the government and the Bank of England had won praise for their swift and coordinated action to shore up the economy.

Yet economists have noted that the time needed to start the programme risks a surge in unemployment and business failures. Companies also complain that the Coronavirus Business Interruption Scheme is too complicated and onerous. Lenders such as Barclays Plc and Lloyds Banking Group Plc have come under fire in particular for quoting high interest rates and requiring directors to offer personal guarantees for loans.

Mr Sunak is considering loosening the requirements for firms trying to access the government-backed loans, according to a report by Sky News, and could make an announcement in the coming days.

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