Millions worked from home during the pandemic but the business infrastructure was lacking. Getty
Millions worked from home during the pandemic but the business infrastructure was lacking. Getty
Millions worked from home during the pandemic but the business infrastructure was lacking. Getty
Millions worked from home during the pandemic but the business infrastructure was lacking. Getty

UK failed to heed homeworking warning of pandemic simulations


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Simulations prior to the coronavirus pandemic warned the UK government to prepare businesses and schools for homeworking, but the advice was "not fully implemented", a report released on Friday found.

The National Audit Office said the government had failed to anticipate the effect a virus like Covid-19 would have on society, the economy, and essential public services.

"This pandemic has exposed the UK's vulnerability to whole-system emergencies, where the emergency is so broad that it engages all levels of government and society," said NAO head Gareth Davies.

"Although government had plans for a flu pandemic, it was not prepared for a pandemic like Covid-19 and did not learn important lessons from the simulation exercises it carried out."

Although the government had plans for a pandemic, many of these were "not adequate" for the challenge at hand, it said.

This might have been different had it learnt from the conclusions of two pandemic simulations.

Exercise Winter Willow, a large-scale pandemic simulation exercise carried out in 2007, warned that business continuity plans needed to be "better co-ordinated" between organisations – and this was "not evident" in most of the plans reviewed by the NAO.

Exercise Cygnus, another pandemic simulation conducted in 2016, noted that "consideration should be given to the ability of staff to work from home, particularly when staff needed access to secure computer systems".

However, when Covid-19 hit, "many departmental business continuity plans did not include arrangements for extensive home working", the watchdog said.

Government failed to define risk tolerance

The report also said that, prior to the pandemic, the government "did not explicitly agree what level of risk it was willing to accept for an event like Covid-19".

According to the report, the government had prioritised preparations for "two specific viral risks" – an influenza pandemic, and an emergency high-consequence infectious disease.

"For whole-system risks, government needs to define the amount and type of risk that it is willing to take to make informed decisions and prepare appropriately."

The latter typically has a high death rate among those who contract it, or has the ability to spread rapidly, with limited treatment options – such as Ebola and the Middle East respiratory syndrome (Mers).

This pandemic has exposed the UK's vulnerability to whole-system emergencies
Gareth Davies,
NAO head

The NAO said that this meant the government did not develop a plan specific to a disease with characteristics like Covid-19 – which has an overall lower death rate than Ebola or Mers, and widespread asymptomatic community transmission.

Brexit a burden and a boon

The NAO also found that time and energy spent preparing for Brexit both helped and hindered planning for future crises.

The watchdog said preparations for leaving the European Union enhanced some departments' "crisis capabilities", but also took up significant resources, meaning the government had to pause or postpone some planning work for a potential flu pandemic.

It found that the emergency planning unit of the Cabinet Office allocated 56 of its 94 full-time equivalent staff to prepare for potential disruptions from a no-deal exit, "limiting its ability" to plan for other crises.

"This raises a challenge for the government as to whether it has the capacity to deal with multiple emergencies or shocks," the report said.

Tributes from the UAE's personal finance community

• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style

“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.

Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term. 

From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”

• Sam Instone, director of financial advisory firm AES International

"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed.  Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."

• Demos Kyprianou, a board member of SimplyFI.org

"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."

• Steve Cronin, founder of DeadSimpleSaving.com

"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.

His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.

Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."

• Zach Holz, who blogs about financial independence at The Happiest Teacher

"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen.  He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”

• Tuan Phan, a board member of SimplyFI.org

"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."

Updated: November 19, 2021, 12:01 AM