The Government has promised to continue paying 80 per cent towards wages until the end of April 2021.
The Chancellor said it will give businesses and employees across the UK certainty into the New Year.
Mr Sunak said: “Our package of support for businesses and workers continues to be one of the most generous and effective in the world – helping our economy to recover and protecting livelihoods across the country.
“We know the premium businesses place on certainty, so it is right that we enable businesses to plan ahead regardless of the path the virus takes, which is why we’re providing certainty and clarity by extending this support, as well as implementing our Plan for Jobs.”
The Chancellor confirmed that the next Budget will be on the March 3 when he will set out the next phase of his plan to “tackle the virus and protect jobs”.
The Treasury also confirmed that struggling businesses will have until the end of March to access the government-guaranteed Covid-19 business loan schemes .