Chancellor Rishi Sunak has announced the government’s furlough scheme will now run until the end of March as the UK starts its second lockdown.
He has also increased the self-employed income support grant from 55% to 80% of average profits, capped at £7,500.
A review of the furlough scheme will take place in January and could see employers using it asked to increase their contributions.
Currently employers pay National Insurance and employer pension contributions but do not contribute to paying wages for hours not worked by employees.
In addition, Sunak has increased the funding guarantee for Scotland, Wales and Northern Ireland from £14bn to £16bn.
“I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed,” Sunak said.
“It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.
“Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.”
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