The chancellor is expected to announce that employers will need to pay a quarter of the wages of their furloughed staff from August.
Fishin Sunak is also expected to tell bosses they must pay national insurance and pension contributions to furloughed staff, and set a cut-off date for adding more workers to the scheme.
Employees will be able to return to work part-time at full pay for hours worked, according to reports, with bosses filing declarations of their hours to prevent abuse.
8.4 million people are currently in the pay of the government under a scheme scheduled to run to October and expected to cost the Treasury around £80 billion.
Meanwhile more than 100 cross-party MPs, including a number of Tories, wrote to Sunak last night urging him to extend the self-employed scheme, which pays out 80 percent of average profits up to £7,500 across the three months it was put in place for. The letter, spearheaded by Labour MP Siobhain McDonagh and signed by 112 others, warns that without the scheme, some will be left “without work and without support.”
