Rishi Sunak extends Covid furlough scheme until March 2021

Latest U-turn follows growing pressure for more support to protect jobs and the economy as second wave hits

Rishi Sunak has announced the government will extend furlough until March next year as the second coronavirus wave and renewed lockdown measures threaten to drive up unemployment.

In a major climbdown for the government after multiple changes to its economic support packages in recent weeks, the chancellor said the Treasury would continue to pay 80% of workers' wages. Employers will only need to pay the cost of pension and national insurance contributions.