Chancellor Rishi Sunak (pictured) has extended the furlough scheme until March 2021.
Sunak outlined that the government will continue to contribute 80% of an individual’s salary, but that employers would have to pay NICs and pension contributions.
There will be a review in January to see if economic circumstances are improving.
Sunak went on to explain that the jobs retention bonus has been scrapped and will be redeployed at a more appropriate time.
Looking to the self-employed, individuals will now have access to support worth 80% of profits.
Furthermore, Sunak outlined that the support is for the entire UK.
Sunak said: “Given these changed public health restrictions and the economic trauma they would cause in job losses and business closures, I felt it best to extend the furlough scheme rather than transition at that precise moment to the new job support scheme.
“It is 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.”