UK furlough scheme extended until the end of March

The scheme, which pays 80 per cent of people's usual wages, has been used to allow employers to mothball parts of their businesses amid the economic crisis created by the coronavirus pandemic.

Now the scheme has been extended until next March, after Chancellor Rishi Sunak earlier said it would be extended for a month.

He told the Commons: "We can announce today that the furlough scheme will not be extended for one month, it will be extended until the end of March.

"The Government will continue to help pay people's wages up to 80 per cent of the normal amount. All employers will have to pay for hours not worked is the cost of employer NICs and pension contributions.

"We will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more."

Mr Sunak also outlined support for those who are self-employed.

He told MPs: "For self-employed people, I can confirm the next income support grant which covers the period November to January will now increase to 80 per cent of average profits up to £7,500."

He also told parliament that "upfront guaranteed funding" for the devolved administrations will increase by £2 billion.

He said: "I also want to reassure the people of Scotland, Wales and Northern Ireland. 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.

"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 £14 billion to £16 billion.

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

Mr Sunak said he had to make "rapid adjustments" to the Government's economic response to Covid-19 pandemic owing to how the virus has spread.

He concluded his Commons statement by giving a lengthy justification for the furlough extension, claiming the second lockdown in England was the "only viable solution left to protect our NHS".

The Chancellor added he would "leave it to the people" to decide whether the Government's actions were right, adding: "What I know is the support we're providing will protect millions of jobs. What I know is that it's never wrong to convey confidence in this country and our economy through our words and actions, and what I know is today's announcement will give people and businesses up and down our country immense comfort over what will be a difficult winter."

However, Shadow Chancellor Anneliese Dodds said the Chancellor is "always a step behind".

She told MPs: "Businesses and workers have been pleading for certainty from this Government, but the Chancellor keeps ignoring them until the last possible moment after jobs have been lost and businesses have gone bust.

"Now when the lockdown was announced, the Prime Minister said furlough would be extended for a month - five hours before that scheme was due to end.

"Two days later, realising the self-employed had been forgotten, there was a last-minute change to the self-employed scheme. And now, further changes.

"The Chancellor's fourth version of his winter economy plan in just six weeks. The Chancellor can change his mind at the last minute, but businesses can't."