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Ministers have extended the cut-off date for its emergency wage subsidy by three weeks, amid fears the scheme left people who were changing jobs out-of-pocket. 

Chancellor Rishi Sunak’s coronavirus job retention scheme (CJRS) allows employers to furlough their staff as it covers 80% of a worker’s wage up to £2,500-a-month. 

The cut-off date has now been moved by three weeks from February 28 to March 19 – the day before Sunak officially announced the move – meaning thousands more will be covered by the bailout. 

The Treasury had faced a tide of criticism that people who were switching roles before the Covid-19 crisis had no safety net. 

Business groups had also complained that firms had to decide by April 18 if they could keep staff on beyond the end of May. This is because employment law means companies must carry out a 45-day consultation period for redundancy proposals. 

The Treasury expects 200,000 people will benefit from the move.

Paymaster general Penny Mordaunt said she was “sorry it was not done sooner”.

She tweeted: “This will help more people and is very welcome. Sorry it was not done sooner and know how worried people will have been.

“Hope to have an update on other Treasury matters soon.”

It comes as the department for work and pensions faces an unprecedented level of benefit claimants, with some 1.4m applying for Universal Credit since Boris Johnson announced the UK would go into lockdown. 

The extra cost for UC is estimated to be around £10bn so far. 

Labour leader Keir Starmer, meanwhile, has pushed the government to explain when and how the lockdown may come to an end, adding it was ”not affecting people equally”.