Rishi Sunak announced his plans to continue protecting jobs through the winter through the Job Support Scheme.
In an update to the House of Commons, the Chancellor confirmed plans for the state to top up the wages of workers forced to cut their hours due to the pandemic.
As part of a package of measures the Chancellor said the new jobs support scheme was aimed at protecting "viable" roles rather than all posts which have been kept going as a result of state support under the furlough programme.
Under the terms of the new scheme, the Government will top up the wages of people working at least a third of their normal hours.
They will be paid for that work as normal, with the state and employers then increasing those wages to cover two-thirds of the pay they have lost by working reduced hours.
Mr Sunak told the Commons: "The Jobs Support Scheme is built on three principles.
"First, it will support viable jobs. 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.
"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.
"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."
How to know if you're eligible?
