A new Winter Recovery Plan to support businesses and workers when the furlough scheme comes to an end has been revealed by the Chancellor today (Thursday).

The Chancellor Rishi Sunak, delivering a speech in Parliament, announced a package of measures that he says will continue to protect jobs and help businesses through the uncertain months ahead as we continue to tackle the spread of the virus.

The Jobs Support Scheme, which will replace the furlough scheme, will see workers get three quarters of their normal salaries for six months, but requires them to work at least a third of their contracted hours.

The scheme will also only support ‘viable’ jobs, but there is no definition currently as to what constitutes a viable job.

It aims to stop mass job cuts after the government introduced new measures to tackle a rise in coronavirus cases.

The Self Employment Income Support Scheme and 15 per cent VAT cut for the hospitality and tourism sectors have also been extended.

The announcement comes after additional measures to combat the spread of the virus were imposed across the UK.

The Chancellor of the Exchequer Rishi Sunak said: “I understand that the resurgence of the virus and the restrictions imposed as a result present a new challenge to businesses and workers which are already struggling.

“That’s why I have brought forward UK-wide measures to directly support Welsh jobs and companies through this next phase of the crisis.

“I was always clear that I wouldn’t hesitate to act in a creative and effective way to protect the Welsh economy and these measures represent that commitment.”

Secretary of State for Wales Simon Hart added: “The UK Government has directly supported more than 500,000 jobs in Wales during the coronavirus pandemic and our and our Winter Economic Plan sets out the next steps to tackle the ongoing and unprecedented economic impact of the virus.

“The new Job Support Scheme, the extension of the Self-Employment Income Support Scheme and the other measures announced by the Chancellor will help keep people in jobs, extend crucial support to businesses and give them the certainty they need.

“The struggle against Covid-19 is the biggest crisis Wales and the UK has faced in decades but we will do everything we can to protect jobs and the economy while keeping people safe.”

The Job Support Scheme will be introduced from 1 November to protect viable jobs in businesses who are facing lower demand over the winter months due to coronavirus.

Under the scheme, which will run for six months and help keep employees attached to the workforce, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.

Employers will continue to pay the wages of staff for the hours they work - but for the hours not worked, the government and the employer will each pay one third of their equivalent salary.

This means employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work.

In order to support only viable jobs, employees must be working at least 33 per cent of their usual hours. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.

The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme, with further guidance being published in due course.

Mike Cherry OBE, Federation of Small Businesses National Chair, said:  “The UK’s small businesses are facing an incredibly difficult winter.

"Today’s support package is the flipside of the coin to Tuesday’s COVID-19 business restrictions.

"We welcome that the Chancellor is ensuring that decisions to protect public health are informed by the need to protect the economy, people’s jobs and prospects for young people in our schools and workplaces.”