Chancellor Rishi Sunak unveiled the expansion of the Job Support Scheme, which is a successor to the furlough scheme, saying: "It will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time."
The government will pay employees who cannot work 67% of their salaries, up to £2,100 a month.
The scheme will come into force on 1 November and run for six months before being reviewed. Employees must be off work for a minimum of seven days to be eligible.
Cash grants to businesses which are forced to close will also be increased, with up to £3,000 per month payable every fortnight to help them with fixed costs.