Rishi Sunak has said cost of living support delivering hundreds of pounds to every household will have a “minimal impact” on inflation – and suggested those who do not need it could give the money to charity.

The chancellor told Sky News that the announcement of new measures worth £15bn to ease the burden on squeezed households was “targeted at those most in need”.

Under the plans, every home will see £400 knocked off their energy bills – an upgrade from a previous policy of loaning them £200 to be repaid over five years – while eight million of the most vulnerable will also receive £650.

It comes at a time when inflation of 9%, a 40-year high, is squeezing households’ spending power, largely thanks to soaring bills for gas and electricity – which are expected to rise by another £800 on average in the autumn.

The universal nature of the energy rebate will have the effect of helping many who do not need any assistance – and Mr Sunak suggested to Sky’s Niall Paterson that “you, like me… can give that money to charity if you don’t need it”.

He added: “Our estimate in my view is that it will have a minimal impact on inflation.”

Asked if it would lift inflation by one percentage point he said “much, much less than that”.

Politics live: Chancellor Rishi Sunak responds to claim cost of living help timed to distract from damning partygate report

Windfall tax on oil and gas firms: Jacob Rees-Mogg warns Rishi Sunak that no tax is ‘economically cost-free’

Sunak unveils £21bn package and U-turns on windfall tax to help Britons ‘hit hard’ by cost of living surge

“What we’re doing is very targeted at those most in need. We’re also raising money to help pay for it,” Mr Sunak said.

“The combination of those two things is the responsible approach.

“Even though we are supporting the economy we want to make sure that we don’t make the inflation situation worse.”

Related posts:

Johnson told to give up power to decide on investigating ministers after Greensill affair ‘A very significant problem’: Fears that patient backlog in some hospitals may last for years Independence and interdependence | Nicola Sturgeon & John Kerry World’s first clinical trial on COVID booster vaccines launched in UK PM and Raab continue scramble for international response to Afghanistan crisis Ex-Labour MP ordered to appear in court over alleged expenses fraud Peer scrutinised for using his private email in ministerial role leaves PM’s cabinet PM’s Brexit minister resigns from cabinet PM ‘committed’ to National Insurance tax hike despite calls to scrap move PM had birthday party during first national lockdown, report claims MP’s claim she was sacked as a minister due to her Muslim faith ‘disturbing’, says Tory peer Rayner was present at Starmer lockdown beers, Labour confirm