Everything you need to know about Chancellor Rishi Sunak's furlough scheme extension

The Government has announced an extension of the furlough scheme, with some differences.

Chancellor Rishi Sunak confirmed in the House of Commons this afternoon (Tuesday) that the Coronavirus Job Retention Scheme will be extended until the end of October.

However, there will be some changes introduced.

They include allowing currently furloughed staff to return to work part-time as the economy reawakens.

In addition, after July, firms will be asked to contribute towards the payments, to ensure staff are paid no less than 80% of their salary, up to a maximum of £2,500 a month.

Details of that employer contribution, said the Chancellor, will be revealed by the Treasury later this month.

The announcement comes after Boris Johnson revealed a slow relaxation of lockdown rules at the weekend.

Nationwide, it is thought some 70% of firms are furloughing at least a portion of their staff during the pandemic.