Chancellor Rishi Sunak has announced a four month extension to the current UK Government Covid-19 furlough scheme.
A new phase for the job retention scheme will see it extended until the end of October, with workers receiving the same level of support at 80% of current earnings.
There was concern that the current furlough scheme was set to be ended after June or reduced to 60% of earnings.
However, Mr Sunak pledged a total of eight months support for workers in all sectors.
But he added that it would include “greater flexibility” to support getting people back to work.
The scheme will continue in all regions of the UK.
Mr Sunak said: “Employers currently using the scheme will be able to bring furloughed employees back part-time.
“And we will ask employers to share with the government the cost of paying people’s salaries.
“Full details will follow by the end of May.”