The furlough scheme will be extended until this September, Chancellor Rishi Sunak is set to announce.
Last night, the Queen carried out her traditional pre-Budget audience with Rishi Sunak, ahead of his statement in the Commons today (March 3) where he’s expected to announce the extension of furlough.
Mr Sunak said the scheme – which pays 80% of a person’s wage of hours not worked due to the pandemic – will continue to help millions of people in “the challenging months ahead”.
However from July, employers will be expected to pay 10% towards the hours their staff do not work, increasing to 20% in August and September.
The Chancellor will announce further support for people who are self-employed, with more than 600,000 people becoming eligible for help as access to grants is widened.
Ahead of the Budget, he said: “Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.
“There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”
During his statement today, Mr Sunak will tell MPs: “First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis.
“Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that.
“And, third, in today’s Budget we begin the work of building our future economy.”