The Government's Furlough Scheme will be extended until the end of September, the Chancellor has announced.
Rishi Sunak has been outlining the budget for the forthcoming year.
He told the House of Commons that the Office for Budget Responsibility predicts the UK economy will return to pre-pandemic level by the middle of next year.
Mr Sunak said the Furlough Scheme will be extended until the end of September.
Employees will continue to receive 80 per cent of salary until the scheme ends. Businesses will be asked to help by July.
The Chancellor has also announced the £20-a-week temporary increase in universal credit has been extended for a further six months.
He said:
"Much has changed but one thing has had stayed the same. I said I would do whatever it takes. I have done and I will continue to do so. We have announced over £280 billion pounds of support. Despite this unprecedented response, the damage this has done to our economy, over 750,000 people have lost jobs and our economy has shrunk by ten per cent.
"It's going to take this country and the rest of the world a long time to recover from this extraordinary time.
"First we will continue doing whatever it takes to support the people. Secondly, once we are on the way to recovery, we will fix the finances. Third, in today's budget we begin the work of building our future economy."
Support for the self-employed will also be extended until September.
A £19 million package for domestic violence programmes and an extension to the Stamp Duty holiday has also been announced.
There will also be no raise in income tax, national insurance or VAT, according to the Chancellor.
All alcohol duties will be frozen. The planned increase in fuel duty has also been cancelled.
Mr Sunak said the OBR expects the economy to be three per cent smaller in five years' time.
Setting out economic forecasts for the next few years, the chancellor said the Office for Budget Responsibility estimated the UK economy would grow by 4% this year and by 7.3% next year, before growing by 1.7%, 1.6% and 1.7% in the following three years.
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