Chancellor Rishi Sunak is considering options to taper off the Government's furlough scheme which is supporting workers staying at home during the coronavirus outbreak.
There are some concerns over the cost of the programme, with figures showing 6.3 million people are having up to 80 per cent of their salaries paid by the Treasury at a cost of £8 billion.
Mr Sunak will announce plans next week on how to wind down the scheme from July, The Times reported. Options included cutting the subsidy level and lowering the £2,500 cap on monthly payments.
But Treasury sources insisted that "no decisions have yet been taken" over the scheme which was introduced to prevent firms from laying off thousands of workers during the lockdown.
Health Secretary Matt Hancock earlier that the Government must "wean off" businesses from the scheme "as the economy gets back on its feet".
Mr Sunak has acknowledged that the current level of expenditure was not "sustainable" in the long term but promised there will be no "cliff-edge" cut-off to the scheme.
Speaking to ITV News, he said the ministers were investigating ways to wind down the scheme currently due to run to the end of June in a "measured way".
Labour has called for the Government to make the scheme more flexible to allow people's gradual return to work.
And the Liberal Democrats have called for a "tapered" end to the programme, with the Treasury paying 50 per cent of salaries for the first month after people return to work, falling to 30 per cent after the third month, with employers picking up the full bill after the fourth.
