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People who refuse to self-isolate when required to do so will face fines of up to £10,000 under an emergency “carrot and stick” plan to control the second wave of Covid-19 sweeping the country.

With infections rising at rates last seen before the full lockdown in March, around four million people on low incomes and in receipt of benefits, who cannot work from home, will also be given special “stay home” payments of £500 to compensate for lost earnings over their two-week isolation periods.