The Treasury has announced plans to extend the furlough job retention scheme until September.
It comes after unions warned redundancies could rocket, particularly in the hospitality sector, if it was scrapped in April.
It means those who are unable to return to employment in the coming months, in businesses such as nightclubs and pubs, will continue to earn an income until the industries have reopened.
Rishi Sunak said the scheme - which pays 80% of employees' wages for the hours they cannot work in the pandemic - would help millions through "the challenging months ahead".
The Jobs Retention Scheme, which kept nine million people in work at its peak last May, pays 80% of wages, up to £2,500 a month.
The extension comes after Boris Johnson unveiled Britain's roadmap to recovery, with non-essential shops and businesses to reopen on April 12.
The four-step plan - subject to vaccination targets and new Covid variants - will ease lockdown and could end all social contact restrictions by June 21.
Follow the Mirror's coverage of the Budget in our live blog here
© Getty ImagesThe Woodpecker in Mackworth stands closed
It would see shops, hairdressers, libraries, gyms and outdoor hospitality reopen on April 12 in England if strict conditions are met.
Around 4.5million people are still on furlough according to the Joseph Rowntree Foundation.
The scheme was due to end last summer, but has been pushed back several times since, including until October 2020, then until December 2020.
It was due to close in March 2021, but was extended by one extra month to April 30, 2021 after a third mandatory lockdown was introduced.
Some 600,000 more self-employed people will also be eligible for government help as access to grants is widened on Wednesday.
Video: Chancellor to extend furlough scheme until September as he unveils Budget (Wales Online)
Chancellor to extend furlough scheme until September as he unveils Budget
![UP NEXT]()
UP NEXT
Sunak will outline a three-point plan to support people through the coming months, rebuild the economy and "fix" the public finances in the wake of the pandemic when he delivers his statement to the Commons at 12.30pm today.
But he has warned of tough economic times ahead and there are reports that he plans to raise some taxes.
Furlough extension - how much will the government pay?
© AFP via Getty ImagesA staff member wears a face mask as she serves customers at the The Shy Horse pub and restaurant in Chessington, Greater London
The Coronavirus Job Retention Scheme has protected more than 11million jobs since its inception last March and had been due to close at the end of April.
Around 4.5million people are still on it.
Under new guidelines, employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September, as the economy reopens.
Speaking ahead of the Budget, the chancellor 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."
Anyone can join the scheme, including parents who can no longer work due to school closures.
However, it's primarily in place for those who cannot work due to forced business closures.
To qualify, you need to have been on your employer's payroll on 11.59pm, October 30, 2020.
What about the self-employed and is a fifth SEISS on its way?
© Getty Images/iStockphotoMature man using a spirit level and marking the wall with a pencil in his kitchen
Further support for self-employed workers has also been confirmed by the Treasury.
Rishi Sunak will deliver a fourth Self-Employment Income Support Scheme grant on Wednesday - with a fifth likely later this year.
It 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 would be eligible for the grants this time, as tax return data for 2019-20 is now available.
Sunak had previously faced criticism that newly self-employed people were unable to benefit from the scheme.
Get the latest money advice, news and help straight to your inbox - sign up at mirror.co.uk/email