A £750m insurance scheme set up by the UK government to support live entertainment during the pandemic has only covered a small number of events, despite the cancellation of shows from Moulin Rouge to Coldplay due to Covid outbreaks.
The government-backed scheme provides cover to event organisers for lost expenses if they are forced to cancel due to lockdown measures. But it does not pay out if artists or production staff catch Covid — a problem that has already caused the cancellation of gigs and shows in the run-up to Christmas.
Coldplay and Lil Nas X pulled out of performances this month after members of their touring party caught Covid. The Libertines, Paul Weller, Steps and Jessie Ware have also been forced to postpone gigs in recent weeks due to the virus. The West End production of Moulin Rouge! has also cancelled performances.
The lack of cover for the most common cause of cancellations will raise new fears over a “lockdown by stealth” by the government. Business leaders are worried that ministers are creating the conditions of a lockdown but without the formal closure orders that would lead to extra government support for companies in the hard hit hospitality and live events sectors.
The events insurance scheme was announced in August but its rollout was delayed by concerns over conflicts of interest and limits to cover. Because of the limitations of its coverage, only a few dozen companies have used the programme and mostly for only small amounts of money, according to people with knowledge of the scheme.
Most of these contracts have related to commercial conferences, awards and Christmas fairs, the people said, with organisers of gigs and theatre productions shying away from the scheme.
The government has refused to reveal the level of the scheme’s take-up, which one executive described as “embarrassing”. They added that “there had only been a minuscule take-up to date, due to the extensive caveats and conditions that have been placed on it”.
MPs have asked questions in parliament to try to force the government to make the numbers public but have been rebuffed. Responding to a question by Labour last week, Conservative MP Julia Lopez said: “The government is unable to share commercially sensitive data about the events that have purchased eligible policies [but] can confirm the scheme has provided cover to a broad range of events, including conferences and Christmas events.”
Event organisers report that many audience members are not turning up to gigs due to concerns over catching the highly infectious Omicron variant, with face masks required in cinemas and theatres, and Covid passes for large events.
The scheme does not cover the reintroduction of social distancing measures, which would lead to events becoming financially unviable and is seen as a possible next step if the government’s current “Plan B” restrictions fail to halt the spread of the new variant.
Executives are also worried about when demand will pick up next year. Kate Nicholls, head of trade body UK Hospitality, said that events and conferences were now being cancelled well into 2022.
Harvey Goldsmith, the music promoter responsible for Live Aid and for shows with artists such as Pink Floyd, Queen, and the Rolling Stones, said that “live entertainment was closed for longer than any other industry and now, less than six months into reopening, we are the first to face new restrictions that could close us again”.
Goldsmith called on the government to change the insurance scheme to avoid putting companies at risk of collapse.
“The government’s insurance scheme simply does not work as it is currently drafted and is hopeless at mitigating our most likely cancellation risk — crew or acts catching Covid — leaving businesses struggling to stay afloat as they schedule shows and pay suppliers.”
The Department for Digital, Culture, Media and Sport said: “Our live events reinsurance scheme gives event organisers the confidence to plan for the future and follows the unprecedented support the government has provided for the culture sector, including the £2bn culture recovery fund.”
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