The Chancellor’s Job Retention Scheme has proved extremely popular since it went live two weeks ago.
Already 6.3 million employees in the UK have been “furloughed”, meaning the government is paying 80% of their wages.
The idea is that the scheme incentivises companies to hold onto their staff even as the economy heads into a severe recession.
The chancellor has already extended the Job Retention Scheme (JRS) scheme once and is under pressure to do so again. Various business groups have warned of mass redundancies unless taxpayer support continues beyond the end of June.
But Rishi Sunak said on Monday he is preparing to phase out the scheme as the economy begins to unlock.
“To anyone anxious about this I want to reassure them that there will be no cliff-edge to the furlough scheme,” he told ITV News.