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In a major U-turn by the Government, the Chancellor said the move is needed because of the economic situation caused by the Covid-19 pandemic.
Mr Sunak said the Government’s highest priority remains “to protect jobs and livelihoods”
He had previously extended the furlough throughout November due to the second national lockdown in England.
The Chancellor 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% 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.”
Paul Cherpeau, chief executive of Liverpool Chamber of Commerce, said made the following statement in response to the news:
“We welcome the extension of the furlough and self employment schemes to March. Businesses need ongoing and sustained support – however, there is still a gap around limited company directors which particularly affects small businesses across our membership, and we will continue to push for further support.”
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