The furlough scheme will be ending in Wales at the end of October.
The Chancellor Rishi Sunak made the announcement in the House of Commons this afternoon.
Wales is more reliant on the job retention scheme than any other part of the UK with 316,000 people on the scheme. The Welsh Government has said that it does not have the "financial fire power" to be able to continue the scheme itself.
There had been calls for Mr Sunak to extend the scene further but in his statement he said it "will wind down gradually" through to the end of October
He added: "Furlough can and should not go on forever. I know when furlough ends it will be a difficult moment. Calling for endless extensions is just as irresponsible as ending over night in June.
"The longer people on furlough more likely their skills will fade. It is in no-one's long-term interests for the scheme to continue forever, least of all those trapped in a job that can only exist because of Government subsidy."
See all the details from the mini budget here.
So what will replace it?
The Chancellor said he would be introdcing a new scheme called the "jobs retention bonus".
Under the new scheme firms will be paid £1,000 for each employee they bring back from furlough and continuously employ through to January on an average of at least £520 a month.
"We'll pay the bonus for all furloughed employees," he said.
"So if employers bring back all nine million people who have been on furlough, this would be a £9 billion policy to retain people in work.
"Our message to business is clear: if you stand by your workers, we will stand by you."
