Eat Out to Help Out

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

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]

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[]

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 impact, especially in the hospitality sector, due to a decline in tourism and leisurely 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[]

Chancellor Rishi Sunak, who announced the scheme.

The scheme, announced by Chancellor Rishi Sunak on 8 July 2020 as part of the Plan for Jobs strategy,[1][9] 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 new COVID-19 cases during the 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]

See also[]

References[]

  1. ^ a b c Hutton 2020.
  2. ^ a b c d e f g h i j Fetzer 2021.
  3. ^ 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.
  4. ^ 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.
  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. Archived 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. Archived 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'". Archived 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.

Sources[]

External links[]

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