THE Chancellor has confirmed the furlough scheme will be extended to the end of September, as will support for the self-employed.

Rishi Sunak confirmed the furlough scheme will be extended until the end of September, and employees will continue to receive 80 per cent of their salary for hours not worked.

He told MPs during the Budget: “As businesses reopen, we’ll ask them to contribute alongside the taxpayer to the cost of paying their employees. Nothing will change until July, when we will ask for a small contribution of just 10 per cent and 20 per cent in August and September.”

Mr Sunak said the support for self-employed workers will also continue until September, with the fourth grant providing three months of support at 80 per cent of average trading profits. He noted for the fifth grant, people will continue to receive grants worth three months of average profits – with the system open for claims from late July.

This morning, Paul Johnson, of Institute for Fiscal Studies, said Mr Sunak extending the furlough scheme until September was offering badly affected businesses a “grace” period to help them get up and running once coronavirus restrictions are fully lifted in the summer.

Calling the extension “relatively generous”, Mr Johnson noted that the scheme does “reduce its generosity”, with employers having to contribute to salaries of staff unable to work from July.