Rishi Sunak is set to announce an extension to the furlough scheme, with employers asked to contribute to workers’ salaries from July.

The chancellor will detail the extension in Wednesday’s budget announcement where he will pledge to help businesses and individuals through the “challenging months ahead – and beyond”.

He is expected to say that the Coronavirus Job Retention Scheme, which has protected more than 11 million jobs since its inception, will remain in place until the end of September.

But the Government’s contribution will be tapered from July – with employers asked to pay in alongside the taxpayer for the cost of furloughed employees.

In July, employers will be expected to contribute 10%, increasing to 20% in August and September, as the economy reopens.

Employees will continue to receive 80% of their salary for hours not worked until the scheme ends.

The Chancellor will also announce further support for self-employed workers, with more than 600,000 people – many of whom become self-employed in 2019/20 – now eligible for cash grants.

A fourth grant from the Self-Employment Income Support Scheme (SEISS) will be available to claim from April, worth 80% of three months’ average trading profits up to £7,500.

The Treasury said that hundreds of thousands more people will be eligible for the grants this time, as tax return data for 2019/20 is now available.

Mr Sunak faced criticism that newly self-employed people were unable to benefit from the scheme previously.

The Chancellor is expected to outline further details of the proposals on Wednesday, alongside plans for a fifth grant.

Ahead of the Budget, he said: “Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.

“There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”