Chancellor Rishi Sunak has extended the furlough scheme for another month.
The scheme was due to expire at the end of March but the extension suggests the Government believes the economy will still be struggling to cope with the impact of the coronavirus pandemic.
Originally announced on March 23, the furlough scheme pays 80 per cent of employees’ wages up to £2,500 a month to save them being laid off during the coronavirus crisis.
When the scheme opened at 8am on Monday, April 20, this year HM Revenue & Customs (HMRC) said claims covering 67,000 employees had been made in the first 30 minutes of the portal opening.
Official figures showed on Thursday that £46.4 billion of furlough payments under the Coronavirus Job Retention Scheme had been claimed for 9.9 million jobs in 1.2 million firms since it was set launched in April.
Here, we take a closer look at employees' rights and how the scheme may come to an end.
What is furlough?
If a company is unable to operate or they have no work for staff to do during the pandemic, workers can be put "on furlough", which means they are kept on the payroll and not made redundant.
Employers facing difficulties are able to access support through the Coronavirus Job Retention Scheme to continue paying 80 per cent of staff wages, to avoid redundancies and keep paying staff.
Under the Government scheme, workers will be paid 80 per cent of their wages, up to £2,500 a month, and continue to pay tax on their income.
Employers can agree to pay the extra 20 per cent, but do not have to.
It is important to note that both you and your employer must agree to put you on furlough and your employer must confirm in writing that you have been furloughed to be eligible to claim.
When will the government's furlough scheme end?
The coronavirus job retention scheme will continue through to the end of April.
Under the furlough scheme the Government will continue to pay 80% of the salary of employees for hours not worked until the end of April.
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Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.
Mr Sunak also extended Government loan schemes until the end of March to help support businesses.
The Chancellor said: “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.
“We know the premium businesses place on certainty, so it is right that we enable them to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our plan for jobs.”
Mr Sunak also announced that the next Budget will be on March 3, 2021.
