THE Government's furlough scheme has been extended by four months due to the coronavirus pandemic, the Chancellor has confirmed.

This afternoon, Chancellor Rishi Sunak said the Government's Jobs Retention Scheme would be extended until the end of October.

The scheme, which currently pays 80 percent of wages - up to £2,500, has so far paid the wages of more than six million people across the UK.

But making his announcement, Mr Sunak said the scheme would be adjusted from the end of July with employers being asked to share the costs.

He said between August and October, the scheme would continue for 'all sectors and regions' of the UK.

He said the Government would then begin to ask employers to start sharing the costs of paying people's salaries.

It is currently unclear how much employers will be expected to pay towards their workers' salaries, but Mr Sunak said further details would be revealed by the end of the month.

He added that he wanted to 'assure' people that workers would still receive 80 percent of their salary through the combined efforts of the Government and employers.

It comes as Mr Sunak last week warned the furlough scheme was not “sustainable” at its current rate although he promised there would be no “cliff edge” cut-off.

Meanwhile, Prime Minister Boris Johnson this week said he does not expect a sudden “flood” of people heading back to work following Monday’s publication of the Government’s “road map” for lifting the restrictions.