The furlough scheme will be extended until the end of March, the chancellor has announced.
The scheme, in which employees receive four-fifths of their current salary up to a maximum of £2,500 of hours not worked, was originally scheduled to end last month.
But it was extended when Prime Minister Boris Johnson announced a new four-week lockdown in England last weekend.
Addressing MPs in the Commons on Thursday, Rishi Sunak announced a further extension into next year.
He confirmed the payments would remain at 80% of people’s wages, with a review of the policy in January.
This would “decide whether economic circumstances are improving enough to ask employers to contribute more”, Mr Sunak said.
The chancellor also announced support for the self-employed, with the next income support grant for November to January increasing to 80% of average profits up to £7,500.
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