The chancellor will “wean” businesses and workers off the furlough scheme amid concerns that the nation has become “addicted”.
Plans to wind down the £8bn scheme, which is paying the wages of 6.3m people, will be announced next week. It is expected that from July the 80% subsidy could be cut back or the £2,500 cap lowered.
Self-employed workers with profits of more than £30,000 could be prevented from claiming government grants.
Rishi Sunak said this week that the scheme was not sustainable as total cost are anticipated to reach £40bn.
Pubs, restaurants and leisure businesses are expected to be able to claim from the scheme for longer, as they will be the last businesses to reopen.
A detailed road map for lifting restrictions is expected from the prime minister on Sunday.