Rishi Sunak will extend the furlough scheme until the end of September and pledge to do "whatever it takes" to help people and businesses through the coronavirus crisis when he unveils his Budget.
The Chancellor is set to outline a three-point plan to support people through the coming months, rebuild the economy and fix the ravaged public finances in the wake of the pandemic.
In his statement to the Commons today, Wednesday, he will build on the £280 billion package of support already given by the Treasury during the crisis, with plans to extend the furlough scheme until the end of September.
The Coronavirus Job Retention Scheme has protected more than 11 million jobs since its inception, but under plans to taper the Government's contribution, employers will be expected to pay 10% towards the hours their staff do not work in July.
Their contribution will increase to 20% in August and September, as the economy reopens, but employees will continue to receive 80% of their salary for hours not worked until the scheme ends.
It had been due to close at the end of April.
Further support for self-employed workers will also be announced, with more than 600,000 people - many of whom became self-employed in 2019/20 - now eligible for cash grants.
A fourth grant from the Self-Employment Income Support Scheme (SEISS) will be available to claim from April, worth 80% of three months' average trading profits up to £7,500, while the Chancellor will set out details of a fifth grant.
The Treasury said that hundreds of thousands more people will be eligible for the grants this time, as tax return data for 2019/20 is now available. Mr Sunak faced criticism that newly self-employed people were unable to benefit from the scheme previously.
Ahead of the Budget, he said: "Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.
"There's now light at the end of the tunnel with a roadmap for reopening, so it's only right that we continue to help business and individuals through the challenging months ahead - and beyond."
The Chancellor will pledge to use the Government's full "fiscal firepower" to protect jobs and livelihoods, vowing to do "whatever it takes" to help businesses and people.
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