The Chancellor Rishi Sunak has announced he is to extend furlough until the end of March 2021.
Speaking to the House of Commons this lunchtime, Sunak confirmed that the furlough scheme will be extended to the end of March, and the government will pay 80% of salaries, up to £2,00 a month.
He said he is offering significant extra support to protect jobs and livelihoods in ‘every region and nation’ of the UK, saying that the furlough scheme was developed “by the government of the United kingdom on behalf of all the people in the United Kingdom”.
He says that any part of the UK will be able to access it until next March.
Sunak also promised increasing support for the self-employed and speeding up payments.
He said the policy will be reviewed in January ‘to decide whether economic circumstances are improving enough to ask employers to contribute enough’.
The chancellor told the Commons his intention was “to give businesses security through the winter”.
“The security we are providing will protect millions of jobs,” he added.
Sunak’s statement comes after the Bank of England said it was pumping an extra £150bn into the economy.
The furlough scheme was originally scheduled to finish on October 31, but was extended to cover the new four-week lockdown imposed on England.