Sunak suggests Covid support on its way after as unemployment hits highest level for more than four years

Video report by ITV News Correspondent Richard Pallot

Chancellor Rishi Sunak has suggested further coronavirus support will be announced at his next Budget, after it was revealed the UK's unemployment rate has hit a four year high.

Official figures showed nearly 830,000 workers have been dropped from UK payrolls since the start of the coronavirus pandemic, with more than 200,000 of those jobs lost in the three months to November.

The Office for National Statistics (ONS) revealed the unemployment rate reached 5% for the first time since early 2016 in the three months to November after another 202,000 people lost their jobs.

Figures for December also showed there were 828,000 fewer Britons on company payrolls since before the crisis struck last February as the pandemic has hammered the jobs market.

MPs put a series of demands for financial support to the chancellor, including VAT help for firms, an extension to the business rate relief, stamp duty holiday, self-employment scheme and benefits boost.

There's also calls to extend the £20 weekly boost to Universal Credit.

Mr Sunak said it is "reasonable" to consider the suggestions "in the round at the Budget", which is scheduled for March 3.

He said the raft of support suggested would cost around £20 billion.

Meanwhile, a business owner has said despite receiving a grant from the government her hotel is having to pay more for keeping staff furloughed due to paying out national insurance and pension contributions.

Emily Lewis, Director of The Moat House, told ITV News: "The situation that we are in is unsustainable. We're paying to keep out staff in a job even with furlough once we've paid out NI and pension contributions."

"Not having this clarity on whether or not furlough is going to be extended - it just kicks the can further down the road."

ONS head of economic statistics Sam Beckett said: “In the three months to November, on our survey data, the employment rate fell sharply again, while the unemployment rate rose to hit 5% for the first time in over four years.

“The number of people saying they had been made redundant in the previous three months remains at a record high.

“Meanwhile, vacancies, which were rising in summer and early autumn, have been falling in the last couple of months.”

The UK's vaccines minister, Nadhim Zahawi, told ITV News ministers are "concerned" by the latest figures, but pointed to the billions in government support provided during the pandemic.

He said vaccines will find a route of the crisis and help return the economy and employment levels back toward normality.

ONS head of economic statistics Sam Beckett said: “The latest monthly tax figures show that there were over 800,000 fewer employees on payroll in December than last February.

“More detailed data, published for the first time, show that parts of London have seen the steepest percentage falls, followed by north-eastern Scotland.

“In the three months to November, on our survey data, the employment rate fell sharply again, while the unemployment rate rose to hit 5% for the first time in over four years.

“The number of people saying they had been made redundant in the previous three months remains at a record high.

“Meanwhile vacancies, which were rising in summer and early autumn, have been falling in the last couple of months.”