30 November 2020

CV-19: REMAINING ISSUES WITH SEISS FOR THE SELF-EMPLOYED

Today the Government website opens for the self-employed to claim the third Self-Employed Income Support Scheme (SEISS) grant.

Whilst this grant will be very welcome to those people eligible, there are a number of remaining problems by comparison to the Furlough scheme that have not been addressed:

  • Two missing months 
  • Applicable rates
  • Frequency of subsequent payments
  • What about the self-employed excluded from the earlier SEISS grants?

 

THE CORE PRINCIPLE OF COMPARABILITY WITH FURLOUGH SCHEME

The SEISS3 webpage says, officially, "The Government are providing the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme.", CJRS,  also known as the Furlough Scheme.  That has been the basic principle from the start.  So shouldn't this be honoured for all time periods since CJRS started in March?

 

TWO MISSING MONTHS

The Chancellor Rishi Sunak originally announced for Furlough "The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st."
 
When the SEISS was first announced, the web page said the payment "...will cover the three months to May."  That is consistent with the start date for the Furlough scheme. 

Then for SEISS2, it was announced it "will be extended", i.e. June to August.
 
SEISS1 and SEISS2 has been paid for two quarters, to cover the six months March to August.  As SEISS3 is for November to January, what has happened to September and October?
 
Two quarterly payments have been made for SEISS, for six months, compared to eight months for Furlough.  Two months lost by the self-employed.  A further payment needs to be offered to the self-employed for those adversely affected by COVID-19 in September and October.
 
 
WHAT RATES SHOULD BE USED?
 
SEISS1 was paid at 80% of trading profits, subject to limits, to reflect the rate applying to Furlough CJRS.  SEISS3 is to be paid at 80% for the same reason.

However SEISS2 was paid at 70%, whereas Furlough continued at 80% for June to August.


So to provide the self-employed with the same level of support as Furlough:

  • Everyone paid SEISS2 for June to August should have their payment topped up from 70% to 80%
  • Payment for September and October should be 70% and 60% respectively, for those adversely impacted by coronavirus in that period

 

FREQUENCY OF SUBSEQUENT PAYMENTS

We do not know how long the Furlough scheme will continue into 2021, and at what rates they will be paid.

Self-employed people will usually have their mortgage, rent and other major payments made on a monthly basis, just like employed people who have benefited from Furlough.

It has been announced that there will be a further payment of SEISS for February to April.  This would be more appropriate to be paid monthly.


WHAT ABOUT THE SELF-EMPLOYED EXCLUDED FROM THE EARLIER SEISS GRANTS?

Some 'self-employed' run a company, so are not technically self-employed for tax purposes, and therefore not eligible for the SEISS grants.

Those who are technically self-employed are not all eligible, either because they have been earning over £50,000 or started their business since 5 April 2019.  

These situations all have major practical issues to resolve, and the Government's answer has been they should claim Universal Credit if need be.

However there is one group whose exclusion from SEISS has never made sense, and could more easily be amended.  Those with slightly less than 50% of taxable income get no support.  For example I know a teacher who does some work for schools on their payrolls but bills nearly half her income directly to parents, self-employed.  So she has not been eligible for SEISS.  Presumably HMRC can see if total earnings are over £50,000.  Maybe something like 25% would be a more appropriate threshold for claiming SEISS?

 

IN CONCLUSION

The latest SEISS payment is very welcome to those who are eligible.

But there remains several issues for support to be comparable to the Furlough scheme, as the Government says is its intention:

  • Payment should for be made for September and October for those adversely impacted by coronavirus in that period, at 70% and 60% respectively
  • Everyone paid SEISS2 for June to August should have their payment topped up from 70% to 80%
  • Payments for February onwards should be made monthly
  • Those self-employed earning slightly less than 50%, say over 25%, who would otherwise be eligible, should be eligible for SEISS backdated to the first grant

COVID-19: THE CASE FOR A SHORT, SHARP FIREBREAK

The idea of vaccines against COVID-19 is to get infections down to a #NEARZERO level, much like the vaccines against influenza.  That would allow the economy to fully open and life get back to normal.  But as the Prime Minister has acknowledged, it will take months after a vaccine is approved before it can be rolled out enough to become effective across all our communities.

So what should we do in the meantime?  The three-tier system for England is effectively elongated shutdown, designed primarily to avoid the NHS being overrun.  Which will cause massive economic and wider social and health problems, for only a relatively small reduction in infections.  MPs are rightly worried.  Can these problems be avoided?  Could we get down to #NEARZERO some other way?


THE NATURAL LIFECYCLE OF THE VIRUS

Ian Jones , Professor of Virology at Reading University stated on BBC Radio Oxford breakfast show last Thursday 19 November breakfast show (at 3hours 32min25s) that "If everybody could live for the next month three metres apart.... the virus would become extinct.  There's no doubt about that. "

That can be explained with the virus's lifecycle, as follows:

  • People tend to show symptoms between 2 and 17 days after infection,  typically after only 5 days
  • People become infectious before showing symptoms and remain infectious for some days after showing symptoms.
  • People will tend to infect their own household, likely within the first few days of becoming infected
  • If people and their household were to self-isolate as soon as they believe one of them has been infected, they and their household would no longer be infectious after about three weeks, certainly by a month
  • If everybody in a geographical area was to simultaneously self-isolate for a month, nobody would be infectious and the virus would be eliminated in that area.  
  • Indeed three weeks would be enough to virtually eliminate the virus in that area

Unfortunately not everybody would be able to self-isolate for three or four weeks.  Hospitals, care homes and some other organisations MUST stay open regardless, and staff will need to continue to go to work.  Some people would not be able to store enough food for that period, but many would using what's in their cupboards and freezers.

In the first lockdown supermarkets remained open.  Hence the lockdown did not achieve complete elimination in the first three or four weeks.  A Lockdown or FireBreak can only be as effective as the level of restriction on people meeting others.

That suggests that if as many people as possible were to self-isolate simultaneously for three weeks, more stringently than in the first lockdown:

  • Infection rates would drop by at least the amount achieved in the first lockdown, where they fell by five sixths from the peak in the first three weeks, after which the fall tailed off.  A fall of five sixths would be great news.
  • Infection rates should drop further to #NearZero levels, allowing much of the economy to re-open, plus a host of other benefits

That would be a Mass Simultaneous Self-Isolation.  Let's call it an Enhanced FireBreak.

The benefits would be:



HOW CAN INFECTION RATES BE KEPT DOWN AFTER A FIREBREAK?

We know from the end of the summer and experience abroad that COVID-19 is so infectious that infection rates can quickly soar.   A lid must be kept on the virus by adopting a tough set of controls:

  • Continuing with social distancing, using masks and washing hands regularly
  • Controls on people and chilled products arriving from abroad
  • Bearing down on any outbreak:
    • Mass testing as has been adopted in Liverpool, asymptomatic and symptomatic
    • Strong local test, trace and isolate measures

However even that set may not be enough to stop infection rates creeping up.  So an Enhanced Firebreak may need to be repeated.  If that was after three months, then a three-week investment in am Enhanced FireBreak would have provided around ten weeks of the economy being open.


THE EFFECT ON EDUCATION

The lockdown and tiers are intended to keep schools open.  But Independent SAGE are reporting more than one in five senior school children were off school last week.  The disruption is not sensible for education.

We also know universities have been badly disrupted by COVID-19. 

Am Enhanced FireBreak would need to have schools and universities closed to be properly effective.  But that would ensure that when they did re-open they could function with little or no disruption.  An 'investment' worth making.


WHAT ABOUT THE FIREBREAK IN WALES?

The Firebreak in Wales was 17 days, including three weekends, but only two school and business weeks.  It started at half term in October, but allowed most schools to go back after that week.  

The result was an overall reduction of infections by about a half.  But as that was still quite high in most regions, the virus soon fought back and infection rates have risen again across the country.

An Enhanced FireBreak has to be the full three weeks to be properly effective, with the sharpest of restrictions, including schools closed for the entire time.


WHEN SHOULD A FIREBREAK OCCUR?

Financial support during the Enhanced FireBreak will be vital.  But only three weeks, and the Government would quickly recoup their investment when the economy reopens.

This and other aspects of an Enhanced FireBreak will take a little while to organise.  December is important for retail and hospitality.  University students will generally be going home over Christmas.  

So the obvious thing to do is to hold the Enhanced FireBreak in early January before schools and universities re-open.  Then maybe again straight after Easter.  

It would mean starting with the tiers, and would then look like this:


Worth trying?
 

27 November 2020

COVID-19: WHATEVER'S HAPPENED TO OPENING THE ECONOMY?

Press briefing 26 Nov

Yesterday the whole of England was proposed to be put into the "High" or "Very High" tiers of measures from next Wednesday 2 December.  The only exceptions being three areas of Isle of Wight, Cornwall and Isles of Scilly which nonetheless will have the Tier1 "Medium" restrictions.

The Government spoke of two objectives last night:

  • Avoiding the NHS being overrun
  • Keeping schools open

But whatever happened to re-opening the economy?  Only a little relaxation of the lockdown restrictions come Wednesday.  No wonder so many Tory MPs are up in arms!

On the NHS, listening to the scientists at the press briefing yesterday, it was explained that tiers 1 and 2 of the previous tier system had not been tough enough to set the right foundation to avoid strain on the NHS as we go into the winter.  The colder weather will benefit transmission of COVID-19.  Having looked at the available stats, I agree.  But then the 27-day "lockdown 2" hasn't done enough either.  Which is why the proposed tough restrictions will still need to be in place to save the NHS from being overrun:

  • To ensure all COVID-19 patients can be treated
  • Avoid other treatments being curtailed

On schools, PM Johnson answered a question with it was important to keep schools open.  But aren't many schools having to close or send pupils home because of outbreaks in their school?  Independent SAGE are reporting more than one in five senior school children were off school last week.  Which is another reason why it is not an option to let infections rise, as that would mean more pupils having their education disrupted.  With the knock-on effect on their parents having to take time off work.

So relaxing restrictions isn't an option.  Indeed the lower the infection rate:

  • The lower the death toll from COVID-19
  • The lower the incidence of LongCOVID.  The King's College ZOE study has concluded that 1 in 20 people, of all ages including children, suffer COVID-19 symptoms for 8 weeks of more, even when they haven't been seriously ill enough to have been hospitalised.  Partly due to the lethargy that follows any serious illness, but also because once the virus gets into the bloodstream it can cause organ damage around the body, including the brain.  
  • Even more people suffering for over 4 weeks, after the initial unpleasant illness often lasting two weeks, compared to flu of a couple of days

In that knowledge, COVID-19 is a nasty disease that nobody should want to catch, of any age.

 

HOW CAN THE ECONOMY BE OPENED?

Countries like China, Hong Kong and New Zealand have been able to re-open their economies by getting infection rates down to very low levels and sometimes total elimination.  As a  result death rates have also been very low too.

Whilst cultural and geographic differences have made it easier for these countries than Europe, with elimination almost impossible here, the objective must be to get infection rates down to #NearZero.  Hence the hope for vaccines, once they are in widespread use.  The benefits are then:

How do we get to #NearZero before vaccines?


THE SCIENTIFIC CAVALRY - TESTING

Back in early August I reviewed the effectiveness of the RT-PCR tests, new test in development and NHS Test and Trace.  Conclusions included:

  • We need alternative ‘Got it’ tests that are:
  • Simpler / Quicker / Cheaper
  • Preferably more reliable, by not being based on swabbing
  • Yet clearly identify all variants of SARS-COV-2 without counting other coronaviruses 
  • Can be used to test everyone, whether or not they are displaying symptoms, as they can be infectious
  • People should be given practical and financial support to self-isolate, otherwise many people will not be able to afford to take time off work, especially if they are not displaying symptoms

It's great to see the pilot in Liverpool of the new "Lateral Flow Tests" .  We were hearing how they are helping to drive down infection rates in Liverpool, which have helped the area be in tier 2 next month instead of tier 3.  Other tests coming through will be even cheaper and effective.  But development and trials  take time.

In the meantime the journalist from Liverpool was bemoaning at the press briefing that people were not coming forward for testing as they would not get adequate support for themselves and their household should the test prove positive.  When will the Government realise that support is so important for testing to be effective?

More widespread testing will help drive down the virus, but without adequate self-isolation support, it won't have as much effect as it could.  Unlikely to get to #NearZero.


THE SCIENTIFIC CAVALRY - VACCINES

Whilst testing is very useful in driving down infections, it is recognised that it is vaccines that will allow infection rates to become #NearZero, as is the case for flu.  PM Johnson said last night "get through this winter, suppress this virus until vaccines come to our aid".  #NearZero would allow the economy to open, and life on general to get back to normal, with many other benefits as shown above.

There has been great news about three new vaccines in recent weeks, but none have yet been approved for use in the UK.  Assuming at least one is approved this side of Christmas, it will nonetheless be at least Easter before vaccines have a sufficient effect to alter restrictions.

Do we have to sit back and wait, whilst letting the new tier system and mass testing take their course?  No we don't.  There is a better alternative.

 

THE ALTERNATIVE

Back in August I also wrote about the hideous side-effects of lockdownsI have every sympathy with those who are complaining about them.  But as set out above, being more lax is not an option.  Yet nor should lockdowns drag on as the Government is currently planning with the three tiers.  

So can we get infection rates down to #NearZero level to let more of the economy re-open, improve the situation in schools, let the NHS treat other conditions, and drive down deaths and LongCOVID?  Before vaccines ride to the rescue?

I believe we can get infection rates down to #NearZero by leveraging the virus's natural lifecycle, as explained here:

  • The virus would be eliminated in any area if everyone self-isolates for a month
  • #NearZero is achievable with a three week FireBreak, provided as many people as possible self-isolate across the country.  Short and very sharp.

By using the new rapid mass testing for any outbreak and arrivals from abroad, infection rates across the country can be kept down for at least a couple of months.  A three week 'investment' for 9-10 weeks open.

Realistically we cannot start a FireBreak until the new year, but this should happen before schools and universities return:


Further details here, including the need for financial support during the Firebreak.

What do you think?









26 November 2020

COVID-19: DETAILS FOR SEISS3 FOR THE SELF-EMPLOYED

Updated 30 November:  Emails are now being received by self-employed people inviting them to claim for the third payment of the Self-Employed Income Support Scheme, SEISS3, starting next Monday 30 November.  The claim website is now open.

The eligibility criteria are of three types:

  • Whether self-employed income in recent tax years fits the same criteria as the first SEISS payments:
    • Even if you didn't claim either of them
    • Though hasn't been extended to the many self-employed people not originally eligible
  • More stringent conditions as to whether adversely affected by COVID-19 in that:
    • "You must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021", the date, when claims close.  
    • This time not if only due to an increase in costs.
    • Potential consideration of the business year as a whole, which is new and somewhat unclear
  • Nonetheless planning to continue to trade

Actual conditions on the claim site:

  

The guidance is available here, including several examples.

 

IN CONCLUSION

There are two significant changes in SEISS3 since SEISS1 and SEISS2:

  • It will be more difficult to legitimately claim SEISS3 than either SEISS1 or SEISS2.  
  • There may also be changes in circumstances after a claim is made for SEISS3 where HMRC would "amend" the claim, presumably to zero and triggering a repayment. 

If in doubt claimants should take professional advice.


REMAINING ISSUES

Whilst this grant will be very welcome to those people eligible, there are a number of remaining problems by comparison to the Furlough scheme that have not been addressed:

  • Two missing months 
  • Applicable rates
  • Frequency of subsequent payments
  • What about the self-employed excluded from the earlier SEISS grants?

Here's a discussion of these issues.

 

25 November 2020

COVID-19: LIVES, LIVELIHOODS AND THE TREASURY

On Wednesday the Chancellor Rishi Sunak set out the Spending Review for the UK.  Key points included:

  • The UK economy is expected to shrink by 11.3% this year, the most for some 300 years
  • Unemployment is expected to reach 7.5% next spring, with 2.6 million people out of work
  • The deficit forecast to hit £394bn this year, equivalent to 19% of GDP, the highest since 1944
  • The Office of Budget Responsibility says Government borrowing will be over 100% of GDP this year, the first time since 1960, partly due to borrowing more, and partly due to the reduction in GDP

It's clearly vital to re-open the economy as quickly as possible, for the country's finances and of course individual livelihoods.  We heard earlier in the week about great news for three vaccines, which will hopefully reduce infection levels to very low levels, #NearZero, that will allow the economy to re-open.  That would achieve a host of other benefits, including a reduction in deaths and incidence of LongCOVID.   Benefiting lives, livelihoods and the Treasury:

TIMESCALES

But it will take months to manufacture and roll-out the vaccines, even assuming that testing has been sufficient for the regulators to authorise each vaccine's use.  

The Government is talking after next Easter before any significant benefit will be seen.  The Prime Minister said at Monday's press briefing that "It will be months before we can be sure that we have inoculated everyone that needs a vaccine, and those months will be hard..."  These sentiments have been echoed by his key scientific advisors.

So do we just have to wait?  Or is there anything we could do to re-open the economy sooner, yet safely?   Here follows a summary of a more detailed evaluation.

 

THE CONCEPT OF A FIREBREAK

The concept of a FireBreak is a short, very sharp set of measures that breaks the chain of transmission of the virus, to substantially reduce infection rates, whilst minimising the very real side-effects of a lockdown.

In this analysis, we can see:

  • The original UK lockdown reduced national infection rates by five sixths in three weeks, with a little more in the fourth week, before the impact tailed off

  • The recent 17-day FireBreak in Wales reduced infection rates by half, more effective in areas with higher infection rates.  The measures were not as strict as the original lockdown, and 17 days was not long enough given the virus's lifecycle
  • Indications from early stages of the latest English lockdown, for which restrictions have been less than the original lockdown, are:
    • The tier 3 and lockdown restrictions, which are not as sharp as the original lockdown, can reduce infection rates in high infection areas by about half in three weeks
    • There has been little impact in areas with medium infection levels
    • Infection levels have even risen in some areas with lower infection levels

 This all means that:

  • The impact of a lockdown or FireBreak is dependent on the severity of the restrictions
  • Most of the impact of a lockdown or FireBreak is in the first three weeks, as would be expected from the virus lifecycle, given how long people take to become and remain infectious:
    • If everybody in a geographical area was to simultaneously self-isolate for a month, nobody would be infectious and the virus would be eliminated in that area.  
    • Indeed three weeks would be enough to virtually eliminate the virus in that area

So a short, very sharp FireBreak of three weeks would cut infection rates dramatically, by reducing contact between people to a vital minimum:

  • Everything except the absolutely vital being closed
  • As many people as possible self-isolating for the period

That would need to be followed by reasonable constraints to keep infection rates very low:

  • Improvements in testing, contact tracing and isolation, which should be far easier at very low infection rates
  • Controls over arrival of people and high-risk goods from abroad 
  • Continuation of social distancing, masks and washing hands

By keeping the FireBreak short and effective, real concerns about 'the medicine being worse than the disease' can be dismissed.

A FireBreak is an investment, given the high levels of infection that has existed in the last few months. 

 

SCHOOLS AND UNIVERSITIES

A key difference between recent restrictions and the original lockdown is that schools and universities have remained open.  There has been significant disruption to classes as a result of high levels of infection in the community.  

These entities being open is also likely to be a factor in recent initiatives not being as successful in driving down infection rates as the original lockdown.  Partly phychological, but also that schools involve adults mingling - parents of younger children, teachers and other staff - as well as the children themselves.  Of course university students are adults.

Schools and universities would need to remain closed for the duration of the FireBreak.  But given that would result in a significant reduction in disruption, this 'investment' would be worthwhile for education.  Provided the FireBreak is kept short, three weeks because of the virus's lifecycle.


FINANCIAL SUPPORT

It is imperative that businesses and individuals are given adequate financial support from the Government during the FireBreak, so businesses can get up and running as soon as it finishes. 

From the Treasury's persective, that investment would be paid back handsomely by the improved economy once the FireBreak finishes.

Financial support is especially important for sectors such as hospitality and live entertainment, that will already have been closed through much of 2020 and are now in tiers 2 and 3.


WHEN SHOULD A FIREBREAK TAKE PLACE?

A short, very sharp FireBreak should ideally take place as soon as possible.  But given December is a major month for retail, and some time for preparation is preferable, early January seems more realistic.  Schools and university students could return as soon as the FireBreak is over.

We would then expect infection rates to tend to rise, but slowly enough to get through to Easter before another FireBreak might be needed. That would provide nine to ten weeks of open economy for an investment of a three-week FireBreak.  

Overall by comparison to the Government's 3-tier plans for England:

An idea certainly worthy of serious consideration, given the potential benefits.

Here is a more detailed discussion of the value of a short, very sharp FireBreak and the science that justifies it.




COVID-19: HOW CAN WE GET BACK TO NORMAL MORE QUICKLY?

It's been said that "There's light at the end of the tunnel.  But we're still in the tunnel."

There has been great news on vaccines from Oxford/AstraZeneca, Pfizer/BioNTech and Moderna.  Safety and effectiveness from their final phase 3 trials look good enough for the regulators to authorise their use, especially for the elderly who are more vulnerable to COVID-19.  Looks like a game-changer in the fight against the disease, by getting the infection rate down to very low levels, to allow life and the economy to re-open.

But it will then take weeks and indeed months for vaccines to be manufactured and rolled out to the public. The need for two doses means the vaccine isn't fully effective until three or four weeks after the first dose.  

The UK Government is hoping that many of the most vulnerable people will be vaccinated by Easter in early April 2021.  But that most other people will follow later in the spring and summer.  Realistically months before we reach the end of the tunnel.

The Prime Minister was at pains to point out at Monday's press briefing that "It will be months before we can be sure that we have inoculated everyone that needs a vaccine, and those months will be hard..." and "the challenge now as we face this difficult winter ahead is to fight down any over-optimism, to master any tendency to premature celebration of success."  These sentiments have been echoed by his key scientific advisors.

So how could we get to the end of the tunnel more quickly?  How else could infection rates get down to very low levels that would allow life and businesses to re-open, and allow the economy to recover?

 

EXPERIENCE IN UK AND WORLDWIDE

The SARS-COV-2 virus that causes COVID-19 is highly infectious, with people becoming infectious before displaying symptoms.  Someone infectious will not initially know it, allowing the virus to spread easily.

Symptoms are serious, worse than influenza:

  • Typically two weeks very unpleasant initial infection, compared to a couple of days
  • Chance of second phase of infection, such as PM Johnson experienced, which can be due to a "cytokine storm" where immune system over-reacts
  • Death after unpleasant hospital treatment, at all ages but more common in older people
  • Strokes, as virus causes micro-clots if the virus gets into the blood
  • LongCOVID, often for people who did not require hospital treatment:
    • Long-term lethargy, such as can happen with any major infection
    • Long-term damage to lungs and breathing
    • Pain and damage to other organs when virus gets into the blood, including the brain, either due to damage from micro-clots or the virus's direct action on cells with the ACE2 receptor 

The virus has been found to spread primarily through the air on water droplets and micro-droplets termed "aerosols".  Still air indoors being easier for the virus to infect another person than being outdoors.  

Various techniques have been found to reduce transmission:

  • Keeping a distance from people.  That works well outdoors.  But aerosols can spread in a still-air room well beyond two metres, be that a shop, workplace or classroom.
  • Masks catch droplets, and so by everyone wearing masks or fabric face coverings, those people becoming infectious will not spread the virus as much.  Though even a surgical mask provides little protection against being infected. 
  • Washing hands, as viruses can also be transmitted via surfaces such as door handles if someone then touches their mouth or nose  
  • Test, trace and isolate.  But up to now the reliance on inherently time-consuming RT-PCR testing means it has been slow to identify contacts of infected people.  Improvements are also needed to tracing and isolation. 

But not everyone adopts these techniques, and in practice in the UK infection rates still rise when a combination of these techniques are used.  Improvements in test technology, tracing and isolation will help, but unlikely to lead to massive reductions across the country in the coming months.

As a society, there are two types of risks of letting COVID-19 infection levels rise:

  1. The NHS would be overrun, meaning people needing treatment for COVID-19 would not get it, and other treatments would be curtailed. 
  2. The higher the infection rate, the less of the economy can be open, and the more disruption there is to education and daily life.  

What has been found to dramatically reduce infection rates, to avoid both types of risk, is a Lockdown or Firebreak.  People are right to be concerned about the hideous side-effects of such measures, which is why any such action should be kept short by being sharp.  As we found in this analysis:

  • The original UK lockdown reduced national infection rates by five sixths in three weeks, with a little more in the fourth week, before the impact tailed off

  • The recent 17-day FireBreak in Wales reduced infection rates by half, more effective in areas with higher infection rates.  The measures were not as strict as the original lockdown, and 17 days was not long enough
  • Indications from early stages of the latest English lockdown, for which restrictions have been less than the original lockdown, are:
    • The tier 3 and lockdown restrictions can reduce infection rates in high infection areas by about half in three weeks
    • There has been little impact in areas with medium infection levels
    • Infection levels have even risen in some areas with lower infection levels

 This all means that:

  • The impact of a lockdown or FireBreak is dependent on the severity of the restrictions
  • Most of the impact is in the first three weeks, as would be expected from the virus lifecycle


BACK TO FIRST PRINCIPLES OF THE VIRUS LIFECYCLE

Ian Jones , Professor of Virology at Reading University stated on BBC Radio Oxford breakfast show last Thursday 19 November breakfast show (at 3hours 32min25s) that "If everybody could live for the next month three metres apart.... the virus would become extinct.  There's no doubt about that. "

That can be explained with the virus's lifecycle, as follows:

  • People tend to show symptoms between 2 and 17 days after infection, but typically after only 5 days
  • People become infectious before showing symptoms and remain infectious for some days after showing symptoms.
  • People will tend to infect their own household, likely within the first few days of becoming infected
  • If people and their household were to self-isolate as soon as they believe one of them has been infected, they and their household would no longer be infectious after about three weeks, certainly by a month
  • If everybody in a geographical area was to simultaneously self-isolate for a month, nobody would be infectious and the virus would be eliminated in that area.  
  • Indeed three weeks would be enough to virtually eliminate the virus in that area

Unfortunately not everybody would be able to self-isolate for three or four weeks.  Hospitals, care homes and some other organisations MUST stay open regardless, and staff will need to continue to go to work.  Some people would not be able to store enough food for that period.

In the first lockdown supermarkets remained open.  Hence the lockdown did not achieve complete elimination in the first three or four weeks.  A Lockdown or FireBreak can only be as effective as the level of restriction on people meeting others.

That suggests that if as many people as possible were to self-isolate simultaneously for three weeks, more stringently than in the first lockdown:

  • Infection rates would drop by at least the amount achieved in the first lockdown
  • Infection rates should drop to #NearZero levels, allowing much of the economy to re-open, plus a host of other benefits:
 
THE UK GOVERNMENT'S APPROACH FOR ENGLAND

In England the plan is to have a three-tier system of restrictions from December to March, with some relaxation agreed between the four UK nations for the Christmas period.

As discussed here, this is likely to achieve the first objective of avoiding the NHS being overrun.  The second objective of opening the economy is very limited, looking like:

  • Some businesses re-opening such as hairdressers, gyms and non-essential retail
  • Hospitality re-opening to a certain extent, depending on level of infection in an area 
  • Entertainment and sports venues re-opening with limited numbers in areas of lower infection

There will also be relaxation across the UK for five days at Christmas.


THE ALTERNATIVE APPROACH

As discussed above, we can leverage the lifecycle of the SARS-COV-2 virus behind COVID-19 to hold a short, sharp FireBreak of three weeks to cut infection rates dramatically.

That would need to be followed by reasonable constraints:

  • Test, trace and isolate:
    • With infection rates much lower, the testing regime would be far more effective
    • Mass testing of asymptomatic people will help
    • Financial support for isolating needs to be far wider than at present 
    • Fast testing is being developed for entrances to venues
  • Restrictions on arrivals from abroad
    • People, with testing reducing need for self-isolation
    • Products, such as chilled foods, where packaging can be contaminated
  • Continuation of social distancing, masks and washing hands

The overall result would be to get infection rates down to #NearZero levels, as if there was a vaccine, with a host of benefits as shown above.


WHEN TO DO A FIREBREAK?

We would have been in a far better position now if a short, sharp FireBreak had been done in England in October, to take advantage of the October half term.  Just as Wales did. But a full three weeks and with sharper restrictions of only the vital organisations being open, and people as far as possible self-isolating.  

That would have driven infection levels across the country to low and probably very low #NearZero levels.  That would have allowed much of life and the economy to re-open, and would have been far better preparation for a Christmas break. 

But the opportunity wasn't taken in October.  It isn't practical to do a FireBreak in England in December, straight after the national lockdown, and when retailers and hospitality venues are usually at their busiest.

However January is when many businesses are quiet.  To provide the benefits of #NearZero infection levels in February, March and beyond, the right time to do a FireBreak would now be in early January.  

Schools would return after the FireBreak.  The concern has been that education has been disrupted by classes or entire schools being sent home due to coronavirus infections, in a haphazard manner.  Higher education too.  The FireBreak would virtually eliminate such disruption, and therefore be better for education overall. 

Likewise businesses and other organisations will have little disruption, and those that have been closed can re-open.  People can plan ahead again.

Deaths and the incidence of LongCOVID would be dramatically reduced, and the economy re-opened and strengthened.  All to the benefit of lives, livelihoods and the Treasury's finances.

With the use of reasonable constraints on transmission, infection levels should stay reasonably low, though will probably tend to rise. It may therefore be necessary to repeat a FireBreak immediately after Easter, but that would have provided ten weeks or more of open economy for an investment of a 3-week FireBreak.

Note that this plan is unaffected by the length of the Christmas relaxation.  The FireBreak is not payment for that relaxation, but rather an investment in the future because infection rates have generally been too high in the last quarter of the year.


22 November 2020

COVID-19: HOW LONG SHOULD A LOCKDOWN OR FIREBREAK LAST?

The UK started its first Lockdown in March.  Wales started a short FireBreak in October.  England recently started a second national Lockdown.  

We know that any set of restrictions has detrimental effects, which I identified back in August.  People are rightly concerned about lockdowns.  So why might a Lockdown or FireBreak be needed, and how long should it last?


WHAT ARE THE OBJECTIVES OF LOCKDOWNS AND FIREBREAKS?

COVID-19 is highly contagious.  People become infectious before they display symptoms.  The natural R number is 3, in that one person will typically infect another 3 people.  That is before they typically have to take to bed and thereby stop infecting others outside their household.  

Whilst R does not tell you timescale, the number of people infected each day by COVID-19 can easily double in a matter of a few days if measures against transmission are not adequate.  1000 people quickly becomes 2000, then 4000, then 8000, then 16000 etc.   As a proportion of people require hospital treatment, of which many die, that can quickly mean hospitals can become overrun such as was seen early in the year in Italy.

Social distancing, masks and washing hands can help to reduce transmission.  But we have been finding that people do not do enough to stop infection rates increasing, especially as the weather has cooled and people spend more of their time indoors, where transmission is more likely.

The first objective of a lockdown is therefore to slow the growth in infections so that:

  • Hospitals are not overrun
  • Deaths are reduced
  • The incidence of LongCOVID is reduced

Stopping daily new cases increasing means getting R below 1, or more usefully by getting the daily growth rate below zero. 

But it is only by getting the daily growth rate well below zero that infection rates fall and the economy can start to re-open.

That is the idea of vaccines, to reduce infection rates to such a low level that normal life can resume.  That is what is done for influenza.  It has not gone away, and some 10,000 people a year still die as a result (from 7,000-21,000 in the UK in recent years, according to Professor Whitty in the press briefing on 21 September).  We might expect that sort of situation to be the ongoing case for COVID-19 with a vaccine. 

But Lockdowns and FireBreaks can similarly get infection rates low or very low, and thereby allow the economy to re-open in part or in full.  That is the second objective.  Which the UK Government seems to ignore.  But should not be forgotten.

 

THE FIRST NATIONAL LOCKDOWN

Here is a graph of what happened in the first national lockdown in March and April 2020:

The lockdown took a few days to take effect, but over the following three weeks the daily infection rate dropped by some five sixths from the peak.  There was only a small further improvement in the following week.  So most of the improvement was achieved in the first three weeks.


THE FIREBREAK IN WALES

Wales started a 17-day FireBreak on 23 October, as schools were breaking up for half term. 

Analysing the available data in detail, the overall effect was to reduce the infection rate by around half, but more in areas of high infection.  As reflected in the ZOE King's College Symptom Study data:

The improvement was not as good as the original national lockdown, for three likely reasons:

  • It was 17 days not the full three weeks.  Although that only accounts for a small part of the shortfall
  • Restrictions were not as stringent as the original national lockdown.  For example, most school age groups in Wales were allowed back to school after half term.  School transmission is as much about adults as kids - the parents of younger children meeting up with other parents, and teachers and other staff mingling.
  • People are becoming increasingly bored of the restrictions, with some arguing against them and undermining them

 

THE LATEST LOCKDOWN IN ENGLAND

The first lockdown never ended for the entertainment industries.  Nevertheless the latest national lockdown in England is known as Lockdown 2, running from 5 November to 2 December.

This has been set for four weeks, but lighter than the original lockdown and the Welsh FireBreak.  For example schools staying open throughout. 

Symptoms will typically show around five days after infection, so statistics based on symptoms would be expected to show the effect of the lockdown from around 10 November.   It's still a little too early to get any clear picture.

However the COVID Symptoms Study run by ZOE and King's College London is beginning to show the effect.  So far infections have stopped rising in each main area across the country, but there's been little improvement:


 In particular:

  • North West and North East England have continued the decline shown as a result of the tier 3 restrictions
  • South west is showing a useful reduc tion
  • But little improvement in other parts of the country, with South East still increasing

 

BACK TO FIRST PRINCIPLES

Ian Jones , Professor of Virology at Reading University stated on BBC Radio Oxford breakfast show last Thursday 19 November breakfast show (at 3hours 32min25s) that "If everybody could live for the next month three metres apart.... the virus would become extinct.  There's no doubt about that. "

That can be explained with the virus's lifecycle, as follows:

  • People tend to show symptoms between 2 and 17 days after infection, but typically after only 5 days
  • People become infectious before showing symptoms and remain infectious for some days after showing symptoms.
  • People will tend to infect their own household, likely within the first few days of becoming infected
  • If people and their household were to self-isolate as soon as they believe one of them has been infected, they and their household would no longer be infectious after about three weeks, certainly by a month
  • If everybody in a geographical area was to simultaneously self-isolate for a month, nobody would be infectious and the virus would be eliminated in that area.  
  • Indeed three weeks would be enough to virtually eliminate the virus in that area

Unfortunately not everybody would be able to self-isolate for three or four weeks.  Hospitals, care homes and some other organisations MUST stay open regardless, and staff will need to continue to go to work.  Some people would not be able to store enough food for that period.

In the first lockdown supermarkets remained open.  Hence the lockdown did not achieve complete elimination in the first three or four weeks.  A Lockdown or FireBreak can only be as effective as the level of restriction on people meeting others.

That suggests that if as many people as possible were to self-isolate simultaneously for three weeks, more stringently than in the first lockdown:

  • Infection rates would drop by at least the amount achieved in the first lockdown
  • Infection rates should drop to #NearZero levels, allowing much of the economy to re-open, plus a host of other benefits:

IN CONCLUSION

If the objective is to simply avoid the NHS from being over-run then only restrictions equivalent to the current national lockdown in England are needed.  But these are not very effective, so will be needed for a significant period of time.

If the objective is to re-open the economy, and minimise the harms from a lockdown, then a short, sharp FireBreak is needed:

  • Short like in Wales, but for a slightly longer period of three weeks
  • With sharp restrictions:
    • Like first national lockdown to achieve a substantial reduction in infection rates across the country
    • Even tighter restrictions to get to #NearZero to let most if not all of the economy re-open.  Restrictions should only be to allow absolutely vital businesses and organisations to stay open, whilst encouraging people to self-isolate 

Education of children is important.  But currently many schools are having to close or send pupils home.  That disruption can be avoided if an investment is made in a short, sharp FireBreak with schools closed, except for children of vital workers.

When?  That will be discussed in this blog once the Government's plans for December are unveiled tomorrow.

 




 

 


 


 






COVID-19: HOW WELL DID THE WELSH FIREBREAK WORK?

The FireBreak in Wales lasted 17 days from Friday 23 October, as schools broke up for half term, and finished on Sunday 8 November.  New restrictions started on 9 November.  That's three weekends and two working weeks, where all the younger age groups went back to school for a week.  How well did that work in reducing infection rates?

As symptoms first appear typically after around 5 days, with tests of symptomatic people being delayed by a further couple of days, say a week in total.  So the effect of the FireBreak on infection rates would be apparent between about 29 October and 14 November.


THE ZOE & KINGS COLLEGE LONDON "COVID SYMPTOM STUDY REPORT"

Some 4 million people across the UK have loaded the ZOE app onto their smartphones.  The report on 22 November covering the period to 18 November showed this graph of new infections for Wales, which has flattened off in the two days since:

The graph is an average for the two weeks up until the specified date.  A day that had a larger number of new cases compared to two weeks previously will show as an increase, and a lower number as a decrease.  

The graph shows the FireBreak starting and finishing its effect as expected around 29 October and 14 November, after which cases have started to rise again.  The overall effect was for new cases to halve in those 17 days. 

Whilst the app only covers people with a smartphone, it has the advantage of not being dependent on the level of testing.


THE ONS COVID-19 INFECTION SURVEY

The Office of National Statistics has expanded its randomised testing programme, but its latest report on 20 November says of Wales that despite "... the relatively small number of tests" "Our modelling suggests that positivity rates in Wales peaked around the end of October, with rates decreasing over the past two weeks. This is based on exploratory modelling of throat and nose swab results."


PUBLIC HEALTH WALES STATISTICS

Statistics from testing of symptomatic people, modelled by BBC, also show the infection rates across Wales peaked around 29 October and had stabilised around 14 November:

 

Virtually all areas have achieved a reduced level of infections.  Even the brown areas of South Wales have improved, often moving from the top of the 200-500 range to the bottom without changing colour:


 

The FireBreak has clearly worked in reducing the level of infections:

  • The higher the starting rate of infections, the greater the drop in infection rates
  • For high-infection areas with a reduction down to some one third of the peak level
  • For other areas, mostly down to about a half
  • Though some areas that started under 100 cases a day per hundred thousand didn't reduce substantially


Update 1 December:  However infection rates have started rising again since the end of the FireBreak, requiring new tight restrictions announced 30 November.


IN CONCLUSION

The Welsh FireBreak worked in reducing daily new cases by about a half overall, being higher in areas of high infection and less in lower areas.

That still left daily new cases running much higher than ideal, hence the need for further restrictions since 9 November.  Those restrictions have not proved to be sufficient to avoid increases, and infection rates have since risen in most regions of Wales.

It is clear that the Firebreak needed to be:

  • Slightly longer, the full three weeks, or 
  • A sharper set of restrictions, including leaving all schools shut for the whole period

Certainly the reduction in cases was not as great as achieved in the first national lockdown in March/April, as analysed here.




19 November 2020

COVID-19: WHAT ABOUT THE THIRD SEISS GRANT FOR THE SELF-EMPLOYED?

Today is 19 November.  That's exactly six months after the first SEISS grant was paid to eligible self-employed people in May.  The second SEISS grant was paid around 21 August.  In each case a few days after people made their claims.  The third grant, SEISS3, has been announced, but claims cannot yet be made.  What is happening?

The self-employed who have been paid one or both of the earlier quarterly grants are very grateful.  However there are several issues:

  • Delay in third payment
  • The period for SEISS3, and missing months
  • Monthly rates
  • Frequency of subsequent payments
  • What about the self-employed excluded from the earlier SEISS grants?

 

THE UNDERLYING PRINCIPLE

The SEISS3 webpage says, officially, "The Government are providing the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme." also known as the Furlough Scheme.  That has been the basic principle from the start.  So shouldn't this be honoured for all time periods?

 

WHAT HAS BEEN ANNOUNCED?

The SEISS3 webpage from 5 November says, amongst further detail:

  • "The online service for the next grant will be available from 30 November 2020" having been brought forward from 14 December
  • "The third grant will cover a 3 month period from 1 November 2020 until 31 January 2021"
  • "The Government has already announced that there will be a fourth grant covering February 2021 to April 2021"

 So let's run through the issues that these statements disclose.

 

TIMING OF THIRD PAYMENT

The payment mechanism has worked well for two payments.  Why aren't claims being accepted now, for payment mid-November in line with the previous payments?  

Two more weeks to wait is a major issue for many self-employed who have had had little or no trading income over the summer and autumn, and are waiting on the third payment for survival.  The website for claims for SEISS3 should be opened immediately.


THE PERIOD FOR SEISS3, AND MISSING MONTHS

The Chancellor Rishi Sunak originally announced for Furlough "The Coronavirus Job Retention Scheme will cover the cost of wages backdated to March 1st."
 
When the SEISS was first announced, the web page said the payment "...will cover the three months to May.  That is consistent with the start date for the Furlough scheme. 

Then for SEISS2, it was announced it "will be extended", i.e. June to August.
 
So SEISS1 and SEISS2 cover the six months March to August.  If SEISS3 is for November to January, as announced, what has happened to September and October?
 
This omission clearly needs to be fixed for SEISS to be the same level of support as Furlough, as the Government have said above.  

There are two ways to do this:
  • Re-designate SEISS3 as covering the months of September to November, or
  • Add two months to the SEISS3 payment to cover September to October
The Government should do one or other for the level of support to be the same as for Furlough.
 
 
MONTHLY PAYMENT RATES
 
SEISS1 was paid at 80% of trading profits, subject to limits, to reflect the rate applying to Furlough CJRS.  SEISS3 is to be paid at 80% for the same reason.

However SEISS2 was paid at 70%, whereas Furlough continued at 80% for June to August.


So to provide the self-employed with the same level of support as Furlough:

  • Everyone paid SEISS2 for June to August should have their payment topped up from 70% to 80%
  • Payment for September and October should be 70% and 60% respectively

FREQUENCY OF SUBSEQUENT PAYMENTS

Self-employed people are no different from anybody else in paying their main committed payments on a monthly basis, be that mortgage, rent, utilities and many other types.

Payment of SEISS should be changed from quarterly to monthly as soon as practicable, depending on how the missing two months is resolved.  That would make it similar to salaried employees in receipt of furlough monies.
 
 
WHAT ABOUT THE SELF-EMPLOYED EXCLUDED FROM SEISS GRANTS?
 
Some 3 million people who would regard themselves as 'self-employed' have not been eligible for SEISS grants:
  • Self-employed for tax purposes:
    • Average earnings over £50000, receiving nothing
    • Started to be self-employed since 5/4/19, as no earnings history available
    • Average self-employed earnings less than 50% of taxable income
  • Owner/directors of limited companies
    • For whom furlough has not been available
    • Whether usually paid through the payroll and/or by dividend

The Government's approach has been to offer Universal Credit to any such person when in need. 

What's not clear is why those with slightly less than 50% of taxable income get no support.  For example I know a teacher who does some work for schools on their payrolls but bills nearly half her income directly to parents, self-employed.  So she has not been eligible for SEISS.  Presumably HMRC can see if total earnings are over £50,000.  Or maybe something like 25% would be a more appropriate threshold? 


IN SUMMARY

The Government has stated that they are "providing the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme." also known as the Furlough Scheme.

For that to be the case:

  • To resolve the missing two months, the next quarterly payment SEISS3 should either be:
    • To cover the months of September to November, or
    • Add two months to the payment to cover September to October
  • Payment rates should be adjusted to be the same level of support as Furlough:
  • Everyone who was paid SEISS2 for June-August should have their payment topped up from 70% to 80%
  • Payment for September and October should be 70% and 60% respectively
  • Note that if the SEISS3 payment is re-designated as September to November, anyone who also claimed for SEISS2 would receive the same amount of money, as the extra 30% for June to August would exactly balance out the 30% total reduction for September and October
  • Payment should be changed from quarterly to monthly as soon as practicable, depending on how the missing two months is resolved.
  • Payment should be provided to those whose self-employed income was less than 50% at some lower threshold, say 25% 
  • Claims for SEISS3 should be opened as soon as possible, long before 30 November.  If necessary any other adjustments listed above can follow.

 

14 November 2020

COVID-19: THE WELSH FIREBREAK. WHY DIDN'T ENGLAND FOLLOW SUIT?

18 November: Data updated 

Wales started a 17-day lockdown a day before half term was due to start, on Friday 23 October, which covered three weekends but only two working weeks.  That finished on this last Sunday 8 November, with new 'intermediate' regulations put in place starting Monday 9th.  Organised groups of 15 indoors and 30 outdoors are permitted, re-opening many sports and social activities, though pubs are only groups of 4 and need to close at 10pm.

As symptoms tend to show about 5 days after infection, we can now begin to see the impact of the FireBreak in the symptoms statistics for Wales:

  • Test and Trace (data to 14 November)
  • The Kings College ZOE app (data only to 9 November)

A more complete picture will be available in days to come.


TEST AND TRACE STATISTICS

South Wales is showing a substantial improvement in infection rates since end October, a few days after the FireBreak started and carrying on a few days after it finished.  That is because there is a time lag between contracting the disease and displaying symptoms to get tested.  This trend is similar to other parts of Wales.  Clearly showing the effect of the FireBreak compared to previous measures:

KINGS COLLEGE ZOE APP

The ZOE statistics to 9 November also show a substantial reduction in infection rate since late October.

SO WHY DIDN'T ENGLAND FOLLOW THE LEAD FROM WALES?

England had moved areas with high infection rates to Tier 3 restrictions, and the improvement in infection rates was already showing in ZOE data by 9 November.

It had been hoped that would be enough for England, so did not follow the Welsh lead.  There may have also been a political factor, in that Wales has a Labour-led Government, and Labour were also suggesting a FireBreak for England.

However England then went into a 4-week 'lockdown lite' on Thursday 5 November.  It is too early to see the impact on symptoms, but unlikely to be as effective as the Wales FireBreak.

England's 'Hope for the best' strategy hasn't worked.  We need to grasp:

  • The best way to get the economy open is to get infection rates down to #NearZero
  • That also minimises deaths and incidence of LongCOVID, whislt allowng life generally to get back to near-normal
  • A short sharp FireBreak is the best way to get infection rates down.  Though preferably a full 3 weeks to get rates right down, tighter than in Wales, because of the natural lifecycle of the virus
  • FireBreaks repeated if necessary, preferably in conjunction with half terms to minimise lost schooling, given vaccines and better testing are some months away, earliest Spring 2021

Then England could benefit like this:





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