"Workers will, through the combined efforts of Government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500".
Chancellor Rishi Sunak is expected to announce the move in the next few days with employers also asked to pay National Insurance and pension contributions.
Finance minister Rishi Sunak is due to announce later this week how much employers will need to contribute to the furlough scheme from August, and is also expected to set new rules on part-time working, which is now not allowed.
The Treasury has indicated that employers will be obliged to declare the number of hours some currently-furloughed staff work if they return part-time; firms abusing the system by failing to pay their share of staff wages risk being charged with fraud and potential breach of contract with their employees.More news: New jobless claims in Whatcom and state fall after coronavirus fraud revelations
Sunak announced he was extending the scheme - which was originally open for three months and backdated from 1 March until the end of May - to the end of June.
'With the widening of the job retention scheme to include part-time working, the temptation for employers to exaggerate claims, especially in times when they need cash desperately, is likely to increase. "We need a furlough scheme that can be tapered down as people return to work".
Figures earlier this week revealed that the cost has reached £15bn while a separate scheme to support self-employed workers had cost nearly £7bn.
"The prime minister and the chancellor have both made promises that people should not lose out for doing the right thing, they have to be held to that promise in the weeks and months ahead".More news: Google Maps' new feature will change the way you share locations
Meanwhile, a cross-party group of MPs has written to the chancellor calling for the scheme supporting self-employed workers to be extended past Sunday.
"Now I don't know what Rishi Sunak, the Chancellor, will say later in terms of self-employed and the furlough scheme for them, but I think there is a general overarching message here that we've had a very generous furlough scheme in place to help people through these extraordinary times and to ensure that businesses' overheads could be covered".
Currently, workers must be on furlough for at least three weeks, making it hard for firms to react to uncertain demand.
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