Furlough scheme extended until October but employers may have to contribute in future

Mr Sunak introduced the Coronavirus Job Retention Scheme, which sees the government pay 80% of a furloughed worker’s salary, on 20 March. This scheme was initially introduced for a three-month period.

Latest figures show that 7.5 million workers have now been furloughed through the scheme and almost one million businesses have received government subsidies for wages.

Research by Inside Housing found that almost 3,000 employees from 40 large housing associations had been furloughed during the coronavirus crisis.

The extension of the scheme follows the announcement by Boris Johnson on Monday of the next phase of the government’s coronavirus response, which includes encouraging those who cannot work from home to return to work.

Mr Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”