Chancellor Rishi Sunak announced a new job support scheme as part of the government's economic response to coronavirus.
Speaking in the House of Commons, the chancellor said the government would "directly support" the wages of people in viable jobs and working at least a third of their normal hours.
Mr Sunak said: "So our task now is to move to the next stage of our economic plan, nurturing the recovery by protecting jobs through the difficult winter months.
"The underlying rationale for the next phase of economic support must be different to what came before.
"The primary goal of our economic policy remains unchanged - to support people's jobs - but the way we achieve that must evolve."
New Jobs Support Scheme
Mr Sunak said the new Jobs Support Scheme would allow businesses to keep employees in a job on shorter hours.
He said: "I'm announcing today the new Jobs support scheme.
"The Government will directly support the wages of people in work, giving businesses who face depressed demand the option of keeping employees in a job on shorter hours rather than making them redundant. "
The scheme will cover "two-thirds of the pay they have lost by reducing their working hours".
Three principles of scheme
Mr Sunak said the Jobs Support Scheme is built on three principles - viable jobs, targeting certain firms, and widening the support.
First, it will support viable jobs.
Mr Sunak said: "To make sure of that employees must work at least a third of their normal hours and be paid for that work as normal by their employer.
"The Government, together with employers, will then increase those people's wages covering two-thirds of the pay they have lost by reducing their working hours, and the employee will keep their job."
Target firms
The Chancellor said: "Second, we will target support at firms who need it the most. All small and medium-sized businesses are eligible but larger businesses only when their turnover has fallen through the crisis."
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'For everyone'
Mr Sunak added: "Third, it will be open to employers across the United Kingdom, even if they have not previously used the furlough scheme.
"The scheme will run for six months starting in November and employers retaining furloughed staff on shorter hours can claim both the Jobs Support Scheme and the Jobs Retention bonus."
What else was announced?
- The Chancellor said he was extending the self-employed grant on similar terms as the next job support scheme.
- Mr Sunak also announced a "pay as you grow" scheme to allow firms to repay bounce back loans over a period of up to 10 years.
- VAT will also be kept at 5% for hospitality and tourism until March 31 2021.
