Labour has slammed the Chancellor for being too slow to bring forward measures to save jobs amid fears of a wave of redundancies.
Instead, he unveiled a new Jobs Support Scheme, where employees will work at least a third of their normal hours and the Treasury and employers will top up their wages.
Shadow Chancellor Anneliese Dodds said she had called for targeted wage support 40 times but it had been repeatedly rebuffed by the Government.
She said: “It’s a relief they have U-turned now.
“But this comes too late for many people who have already lost their jobs – because the businesses employing them believed there would be no wage support following the end of next month.
“Indeed, the deadline for redundancy consultations by large firms before the end of the furlough scheme, came and went last week without a word from this government.”
Mr Sunak said his “number one economic priority is to protect people’s jobs”.
“I can assure this House and the country my number one economic priority is to protect people’s jobs and that’s what this Government will continue to do.”
He accused Labour of calling for a “Plan B” but does not have a “Plan A”.
Mr Sunak announced an extension to grants for the self employed – however support was capped at 20% of monthly profit, which is significantly less generous than earlier rounds.
He also set out a 15% VAT cut for the hospitality and tourism sectors, and help for businesses in repaying government-backed loans.