Rishi Sunak announces furlough scheme will be extended to the end of March

5 November 2020, 12:52 | Updated: 5 November 2020, 13:05

The furlough scheme pays 80% of employees wages if they cannot work due to Covid.

Chancellor Rishi Sunak has confirmed that the furlough scheme has been extended until the end of March.

Following the latest lockdown in England, Mr Sunak said the scheme will pay up to 80% of a person's wage up to £2,500 a month of people who are unable to work.

This will then be reviewed in January when the government would ‘decide whether economic circumstances are improving enough to ask employers to contribute more’.

Mr Sunak confirmed the furlough funding would also apply to Scotland, Wales and Northern Ireland.

Chancellor Rishi Sunak announcing the extension of furlough until end of March

He said: "The furlough scheme was designed and delivered by the government of the United Kingdom on behalf of all the people of the United Kingdom, wherever they live.

Read More: Full list of 'essential shops' allowed to stay open in England from Thursday

"That has been the case since March, it is the case now and will remain the case until next March.

"It is a demonstration of the strength of the union and an undeniable truth of this crisis we have only been able to provide this level of economic support because we are a United Kingdom.

"And I can announce today that the upfront guaranteed funding for devolved administrations is increasing from £14bn to £16bn.

"This Treasury is, has been and will always be the Treasury for the whole of the United Kingdom."

Speaking to the House of Commons, the chancellor also announced support for the self-employed.

The next income support grant for November to January will be increasing to 80% of average profits up to £7,500.

But the job retention bonus - which offers £1000 to businesses who keep on employees - has been ditched.

He told MPs: "Our highest priority remains the same: to protect jobs and livelihoods.”

He also said he wants ‘to give businesses security through the winter’.

Mr Sunak added: "I know that people watching at home will have been frustrated by the changes the government has brought in during the past few weeks.

"I have had to make rapid adjustments to our economic plans as the spread of the virus has accelerated."

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