The Government’s furlough scheme will be extended throughout England’s second lockdown, with 80% of wages paid.
Boris Johnson announced a month-long national lockdown on Halloween, the date the first scheme was initially set to finish.
His new lockdown rules, which will come into force at 12.01am next Thursday until December 2, is an attempt to save the UK's Christmas following a surge in coronavirus cases.
Under the rules, non-essential businesses, pubs, bars and restaurants have been ordered to close, with takeaway services permitted only.
To support these businesses, the Prime Minister announce the furlough scheme will be extended and said he is "under no illusions" how difficult this will be for people.
Addressing the nation on Halloween from Downing Street, Mr Johnson said: "I’m under no illusions about how difficult this will be for businesses which have already had to endure such hardship this year and I’m truly, truly sorry for that – and that’s why we’re going to extend the furlough system through November.
"The furlough system was a success in the spring, it supported people in businesses in a critical time.
"We will not end it, we will extend furlough until December."
Speaking on his decision to implement a lockdown, Mr Johnson said: “I'm afraid no responsible Prime Minister can ignore the message of those rising coronavirus figures.
"We know the cost of these restrictions - the impact on jobs and livelihoods, and people's mental health. No-one wants to be imposing these measures."
Unlike the March lockdown, the Prime Minister said measures would be time-limited from November 5 to December 2, when restrictions would be eased and regions would go back into the tiered system.
He added: "Christmas is going to be different this year, perhaps very different.
"It’s my sincere hope and belief that by taking tough action now we can allow families across the country to be together."