Chancellor Rishi Sunak has announced an extension of the current furlough scheme in another major Tory U-turn. The latest scheme will pay two thirds of the wages of employees who are unable to work because of lockdowns – here’s how it will work

Rishi Sunak has renewed the furlough scheme for six months, confirming the Treasury will pay employees who are left unable to work due to fresh coronavirus restrictions (Image)

Rishi Sunak has announced a six-month furlough extension for millions of employees who remain out of work due to local lockdown restrictions.

The Chancellor said the new scheme will support businesses who have been forced to close – and those that remain closed – including in the arts and hospitality sectors.

Addressing the nation on Friday, he said the government will pay two thirds of employees’ wages over the next six months up to a value of £2,100 per worker.

Under the scheme, set to start on November 1, firms that are legally required to close due to local or national restrictions will receive grants to pay staff up to two thirds of their salary.