Some 935,000 companies have used government help to retain jobs, claiming more than £10 billion, the Treasury said. "The job retention scheme will be extended for four months until the end of October," Sunak told parliament in a statement.
He told MPs there would be "no change" until the end of July but "more flexibility" from August, including the possibility of bringing back part-time workers. Businesses would also be asked to share the cost of salary support to maintain current levels of assistance.
Sunak's statement came after speculation that the scheme - part of an unprecedented package of government intervention to support businesses - would be gradually reduced. But with predictions of a 14 percent slump in GDP this year, and no immediate return for most businesses from lockdown measures, there have been calls for it to be maintained.