The government's Covid-19 furlough scheme is set to continue at the current rate until October, the Chancellor has confirmed.
Rishi Sunak said the Job Retention Scheme will support furloughed employee wages at the current rate of 80% and up to a maximum of £2,500 per month.
Farmers and rural businesses who have put staff on furlough can now do so until at least the end of October.
By then, the government will have provided eight months of support through the scheme.
Tuesday's (12 May) announcement quashed rumours that the Chancellor would cut the government contribution to 60 percent.
Mr Sunak told the House of Commons: "I'm extending the scheme because I won't give up on the people who rely on it.
"Our message today is simple: we stood behind Britain's workers and businesses as we came into this crisis, and we will stand behind them as we come through the other side."
Martyn Dobinson, partner at accountancy firm Saffery Champness, welcomed the news as the 'sensible way forward'.
"The cliff edge has been avoided for now," he said, adding that the government's contributions will reduce from August in favour of sharing the cost with employers.
“It is providing a lifeline right now to many rural businesses and their employees. Many rural businesses would be on their knees without it,” Mr Dobinson said.
A quarter of the UK's workforce, approximately 7.5m people, are now covered by the scheme, which has cost £14bn a month.
