Exploring Financial Frontiers: Rishi Sunak's Contemplation of Pre-paid Debit Cards for Millions Amid the Covid Crisis

Exploring Economic Stimulus: Rishi Sunak's Consideration of Gift Cards for Millions During Covid Crisis

In a bid to revitalize the British economy during the initial easing of the first Covid lockdown, Rishi Sunak, the then-Chancellor, contemplated a novel approach—providing gift cards or pre-paid debit cards to millions of Brits. Documents revealed by the Covid Inquiry this week shed light on discussions held in June 2020 between Sunak and Treasury officials.

According to Dan York-Smith, the Treasury's director general for tax and welfare, various plans were on the table, ranging from vouchers in the form of QR codes for mobile phones to pre-paid debit cards specifically for use in the struggling hospitality sector. The possibility of distributing the debit cards through digital wallets or in physical card form was also explored.

However, challenges and risks associated with the pre-paid cards emerged during deliberations. The logistics of registering every adult in the UK posed substantial hurdles, and the distribution of tens of millions of cards through the post raised concerns about theft, fraud, and loss. Ultimately, the idea was abandoned by Sunak in a meeting on June 23, 2020.

The government then opted for the Eat Out to Help Out scheme, a decision that drew criticism and earned the moniker "eat out to help the virus" from Chief Medical Officer Sir Chris Whitty. In his witness statement to the Inquiry, York-Smith acknowledged that while fraud and value for money were assessed, there was no specific risk assessment regarding the impact of the Eat Out to Help Out scheme on Covid-19 transmission.

Sunak, defending the scheme as the "right thing to do," faced scrutiny at the Inquiry. The Prime Minister, Boris Johnson, dismissed criticism, arguing that the scheme was essential to safeguarding hospitality jobs, citing potential devastating consequences without intervention in August 2020.

In the hot seat, facing questions about the controversial £840 million Eat Out to Help Out scheme, Rishi Sunak defended the initiative, characterizing it as a 'micro policy.' Government scientists, including Professor Sir Chris Whitty, were notably absent from the consultation process, prompting criticism. Sunak, grilled on this omission, argued that scientists had ample opportunity to voice their concerns between the scheme's announcement and implementation.

Privately dubbed 'Eat Out To Help The Virus' by Sir Chris Whitty, and with Sir Patrick Vallance suggesting it was 'highly likely' to have contributed to increased deaths, the discount scheme faced intense scrutiny. However, Sunak countered these criticisms, asserting that scientists had multiple opportunities to express reservations but chose not to do so in any relevant forum.

The exchange underscores the ongoing debate about the government's approach during the early phases of the Covid-19 pandemic, shedding light on the intersection of economic policies and public health concerns.

As the scrutiny over the controversial £840 million Eat Out to Help Out scheme continues, Rishi Sunak's defense of the initiative raises questions about the intersection of economic policies and public health considerations during the early stages of the Covid-19 pandemic. The acknowledgment that government scientists, including Sir Chris Whitty, were not consulted on the scheme adds another layer of complexity to the debate.

Sunak's assertion that scientists had ample opportunity to voice concerns, coupled with the private moniker 'Eat Out To Help The Virus' attributed to Sir Chris Whitty, highlights the tension between economic stimulus measures and potential public health consequences. The ongoing discussions underscore the challenges faced by policymakers in navigating the delicate balance between revitalizing the economy and safeguarding public health during unprecedented times.