The chancellor is expected to unveil new support for workers in parts of England under tier two restrictions.
Rishi Sunak will announce an update to the Job Support Scheme (JSS) - which is set to replace furlough in November - in the Commons on Thursday.
Critics say not enough is being done for companies in tier two areas that have seen demand collapse without being formally required to shut.
In tier three areas, workers at firms ordered to shut get emergency support.
Talks were held throughout Wednesday, with the government said to have acknowledged that while there are three tiers of alert level - medium, high, and very high - there are only two tiers of support.
Helpful @BBCNews chart of job support schemes vs tiers in here: Rishi Sunak to unveil new rescue deal for jobs and firms https://t.co/MLuIj8KqeI #Covid19UK
— Michelle Dixon (@m_dixonlaw) October 22, 2020
The chancellor's spokesperson said: "What we have always said is that our package of support is always flexible, and always up for review, to make sure that it is dealing with the situation as it evolves."
In tier three areas, the government will pay 67% of affected workers' wages, up to £2,100 a month, from 1 November ("lockdown Job Support Scheme" in the chart below). Some workers can also claim Universal Credit.
But in tier two regions, the only help available will be the standard JSS ("part-time Job Support Scheme" in the chart below).
That is meant to support "viable" jobs only, requires employees to do at least a third of their normal hours, and demands a much larger contribution from employers.
Business groups and unions say this means many firms will not be able to use it and will have to lay off workers instead.
Areas in tier two - the second-highest risk level - include London, Essex, much of the West Midlands, Leicester, Nottinghamshire, Cheshire, West Yorkshire and north-east England.
Coventry is to move to tier two Covid restrictions from midnight on Friday, the city council has said.
Latest Stories
-
Ghana’s Education Quality ranked 125 out of 183 countries in latest Global Youth Development Index
21 mins -
Emma Stone wants people to use her real first name
25 mins -
FIFA Club World Cup 2025: Sundowns, Esperance join Al Ahly and Wydad as CAF representatives
4 hours -
CAFCL: Al Ahly set up historic final with ES Tunis
5 hours -
We didn’t sneak out 10 BVDs; they were auctioned as obsolete equipment – EC
8 hours -
King Charles to resume public duties after progress in cancer treatment
9 hours -
Arda Guler scores on first start in La Liga as Madrid beat Real Sociedad
9 hours -
Fatawu Issahaku’s Leicester City secures Premier League promotion after Leeds defeat
9 hours -
Anticipation builds as Junior Speller hosts nationwide auditions
10 hours -
Etse Sikanku: The driver’s mate conundrum
10 hours -
IMF Deputy Chief worried large chunk of Eurobonds is used to service debt
11 hours -
Otumfuo Osei Tutu II celebrates 25 years of peaceful rule on golden stool
11 hours -
We have enough funds to pay accruing benefits; we’ve never missed pension payments since 1991 – SSNIT
11 hours -
Let’s embrace shared vision and propel National Banking College – First Deputy Governor
12 hours -
Liverpool agree compensation deal with Feyenoord for Slot
12 hours