Chancellor Rishi Sunak is set to extend furlough until March, sources have told the BBC.
The full details will be unveiled in a statement in the Commons shortly.
It’s not clear if it will be the full 80% currently available.
The move follows several days of wrangling over the scope and duration of the furlough scheme. It was due to end on 31 October, but has already been extended to cover the current four-week lockdown in England.
That announcement at the weekend sparked a row with Scotland and Wales, which argued that it was unfair for the full support package to be available only when England is in lockdown.
They said the scheme – which guarantees 80% of wages up to £2,500 a month for people unable to work – should be on offer if they went into their own full national lockdowns later on.
Mr Sunak’s statement is due a few hours after .
The Bank warned the resurgence of Covid-19 would lead to a slower, bumpier recovery.