THE jobs furlough scheme set up in the wake of the coronavirus outbreak is to be extended until the end of March, Rishi Sunak has told the Commons.

In a major U-turn by the Government, the Chancellor said the move is needed because of the economic situation caused by the Covid-19 pandemic.

Mr Sunak said the Government's highest priority remains "to protect jobs and livelihoods".

He had previously extended the furlough throughout November due to the second national lockdown in England.

The Chancellor told the Commons: "We can announce today that the furlough scheme will not be extended for one month, it will be extended until the end of March.

"The Government will continue to help pay people's wages up to 80% of the normal amount.

"All employers will have to pay for hours not worked is the cost of employer NICs and pension contributions.

"We will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more."

At the Welsh Government coronavirus briefing in Cardiff, Economy Minister Ken Skates said he welcomed the Chancellor’s announcement, despite it coming a little late in the process.

He added that the greatest risk is ‘doing too little and too late’ and that it is ‘absolutely essential’ that the UK Government brings in further support as soon as possible, if it is needed.

He went on to say that he agreed as a minimum that 80 per cent of a wage should be offered but ‘there will be people who struggle’, that is why they have ‘increased the level of support’ in Wales.

Mr Skates said it was ‘vital’ to act swiftly when responding to a crisis and UK Government could ‘learn from models’ from other countries in Europe.

He added that this is because there will be future events that will require significant intervention from UK Government.

The Economy Minister said that alongside the UK Government schemes, Wales has introduced the ‘most generous offer’ of support than anywhere in the UK.

This is shows in the Economic Resilience Fund which saw Phase 3 launched last week and around £300m was made available to help businesses deal with both the economical challenges of the fire-break but also to prepare them for a Post-Covid and Post-Brexit future.

Talks are also ongoing about a phase 4 of the Economic Resilience Fund and supporting businesses who do not pay business rates as week as individuals not protected by the UK job retention scheme.

He added that ‘tis is only the beginning’ and although he was ‘deeply concerned’ the UK support scheme was not done sooner and involving the devolved governments but it was ‘none the less very welcome indeed’.

Mr Skates said the devolved Welsh Government is doing all it can to help businesses through these difficult times but there is more UK Government could do to help.

The move from UK Government comes after they continually resisted pressure to extend the furlough scheme which was originally supposed to end in October.

The Chancellor defended the Government's actions in the face of the Covid crisis, and insisted the second lockdown in England was the "only viable solution left to protect our NHS".

He told MPs: "Given these changed public health restrictions and the economic trauma they would cause in job losses and business closures, I felt it best to extend the furlough scheme rather than transition at that precise moment to the new job support scheme.

"Political opponents have chosen to attack the Government for trying to keep the economy functioning and to make sure the support we provide encourages people to keep working.

"And they will now no doubt criticise the Government on the basis that we have had to change our approach. But to anyone in the real world that's just the thing you have to do when the circumstances change."

Mr Sunak also outlined support for the self-employed.

He told MPs: "For self-employed people, I can confirm the next income support grant, which covers the period November to January, will now increase to 80% of average profits up to £7,500."

Mr Sunak bowed to pressure from the devolved administrations and said "upfront guaranteed funding" for them will increase by £2 billion.

He said: "I also want to reassure the people of Scotland, Wales and Northern Ireland. The furlough scheme was designed and delivered by the Government of the United Kingdom on behalf of all the people of the United Kingdom, wherever they live.

"That has been the case since March, it is the case now and will remain the case until next March.

"I can announce today that the upfront guaranteed funding for devolved administrations is increasing from £14 billion to £16 billion."

The Chancellor added he would "leave it to the people" to decide whether the Government's actions were right.