The government will continue to top up workers salaries, that are unable to return to their roles due to the Coronavirus.
In the House of Commons, Chancellor Rishi Sunak revealed the Job Support Scheme will replace the furlough scheme from 1 November.
The scheme means employees can be paid 77% of their wages by working 33% of their hours.
For the hours employees can’t work, the government and the employer will each cover one third of the lost pay
The grant will be capped at £697.92 per month
It will be open to employers across the UK even if they have not previously used the furlough scheme
All small and medium-sized firms are eligible for the scheme, but big businesses will only be allowed use the support if they have lost income due to coronavirus.
The Job Support Scheme will run for 6 months.
The measure had been called for by many across the business sector to help out, as there were suggestions unemployment could skyrocket as nearly three million workers are currently on partial or full furlough leave, according to official figures.
For businesses to support the hospitality and tourism sectors, Mr Sunak said the temporary 15% VAT cut will be extended to the end of March next year.
It means that those businesses will only pay 5% VAT, rather than 20%.
The Chancellor also announced he was extending the self-employed grant on similar terms to the Jobs Support Scheme, which will start on November 1.
The bounce back loans that business took out during the lockdown have been extended to be able to be paid over 10 years, reducing monthly repayments for companies. The scheme was labelled “pay as you grow” by Mr Sunak.