The chancellor is set to announce that the government’s furlough scheme will be extended until September.
Rishi Sunak is expected to confirm the decision as he reveals the government’s budget plan on Wednesday.
The Coronavirus Job Retention Scheme (CJRS) has protected around 11 million jobs throughout the UK since the start of the pandemic.
And Wednesday’s announcement will mean that businesses and individuals will now continue to be supported through the next stage of lockdown with furlough payments remaining at 80% of the employees salary.
Although employers will now be asked to pay a percentage towards their staff’s furlough payments.
Sunak is also set to announce that more than 600,000 people will now be able to claim direct cash grants under the Self-Employment Income Support Scheme (SEISS).
The chancellor 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.”
A statement released by the UK government on Tuesday said: “As restrictions are eased and the economy begins to reopen, businesses will be asked to contribute alongside the taxpayer to the cost of paying their employees for hours not worked.
“The government will ask for a small contribution of just 10% in July and 20% in August and September towards the hours their staff do not work.”