The Coronavirus Job Retention Scheme has been extended by an extra month until the end of April 2021.
Announcing the decision on Thursday (17 December), chancellor Rishi Sunak said the move would provide "certainty for millions of jobs and businesses".
Under the extended scheme, government will continue to pay 80% of wages of workers who have been furloughed by their employers.
Sunak also confirmed an extension to government-back Covid business loans until the end of March.
We are extending furlough until the end of April 2021.— Rishi Sunak (@RishiSunak) December 17, 2020
We will continue to pay 80% towards wages of unworked hours - giving businesses and employees across the UK certainty into the New Year.
Read more: https://t.co/tQzuqeAzzH #PlanForJobs pic.twitter.com/WRH5ih27d2
"We know the premium businesses place on certainty, so it is right that we enable them to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support," he said.
Sunak also revealed his next Budget would take place on 3 March 2021.