Chancellor of the Exchequer Rishi Sunak has announced that the UK's furlough scheme will be extended until March.
In a statement to the House of Commons on Thursday, Sunak confirmed that the government will continue to pay 80% of wages of those left temporarily unable to work due to the coronavirus pandemic.
Mr Sunak said that the policy, officially named "the Job Retention Scheme", would be necessary to protect jobs and livelihoods from the long-lasting impact of the second UK lockdown.
He also confirmed that the policy will be extended to Scotland, Wales, and Northern Ireland in a "demonstration of the strength of the Union".
"We have only been able to provide this level of economic support because we are a United Kingdom", Sunak said.
Mr Sunak also announced that the self-employed would be offered support in the form of a grant of 80% of their previous annual profits, up to £7,500.
The opposition Labour Party said that furlough scheme extension had been slow, which led to uncertainty for workers. Labour also highlighted that staff in areas in "tier three" restrictions under the tiered system, which saw bars closed, were only offered 67% of their typical wages.
The move follows days of discussion over how the furlough scheme should be extended. It was initially set to end on 31 October, but was extended to cover the newly-announced four-week lockdown in England.
The devolved governments of Scotland and Wales have also argued that the provisions are unfair as the full support package will only be available to England and they may need funding for any potential future lockdowns.
Scotland currently remains in a tiered system where restrictions are imposed based on the severity of the outbreak on a regional basis. Wales is now reopening from a 2-week "circuit breaker".
The chancellor's statement comes after a decision by the Bank of England (BoE) to inject an extra £150bn of stimulus into the economy. The Bank warned that new cases of Covid-19 would slow economic recovery as seen during summer.
About 9.6 million people have been placed on furlough at one time at least, with a large increase in the first few months since the introduction of the scheme in March.
Around £40bn has been spent on furlough, which secures 80% of wages up to £2,500 a month for people unable to work. Mr Sunak said that extensions would be available "if necessary".
The measure will continue until the end of March, the policy will be up for a review in January to see if employers should be asked to increase their contributions.