Chancellor Rishi Sunak has extended the furlough scheme until the end of April.
The government continue to contribute 80% towards wages of staff on the scheme, covering hours not worked. This will be reviewed in January. Businesses can apply to the end of March.
The eligibility criteria will remain unchanged and the scheme will continue to apply to all UK nations. Furlough was last extended on November 5, to the end of March 2021.
More:Earlier extension of furlough ‘would have saved jobs’
Sunak also extended the government-guaranteed Covid-19 business loan schemes to the end of March.
He said the Coronavirus Job Retention Scheme (furlough) has protected 9.6 million jobs across the UK and more than one million businesses had accessed loans.
The government said extending furlough to the end of April gave businesses “certainty” and was “well ahead of the 45-day redundancy notice period”.
The Airport Operators’ Association welcomed the extension. Chief executive Karen Dee said the move was “a welcome step that will help support the aviation sector through the challenging months ahead”
But she said “it is essential that the government provides longer-term support as our airports face a challenging and slow recovery”.
Dee added: “As one of the sector’s hardest hit by the pandemic it is essential that the government brings forward a tailored package of financial support to enable our airports to play their essential role in our economic recovery as well as wider agendas such as Global Britain, levelling-up and inclusive and sustainable growth.”
Sunak promised more support measures on March 3, the date he confirmed for the next Budget.
He said: “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.
“We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support.”
Business secretary Alok Sharma added: “While our loan schemes have provided a vital lifeline to millions of firms across the country, we know that business owners need additional certainty as we head into the New Year.
“Extending government-backed loan schemes will give companies right across the UK the finance they need to support, protect and create jobs as we build back better from the pandemic.”