The chancellor unveiled emergency measures as part of a £15bn package to tackle the impact of soaring inflation, which has reached a 40-year high.

How is it funded?

Out of £15 billion, £5 billion of the package would be paid for by a levy on the profits of oil and gas giants, and around £10 billion will be covered by extra borrowing

Temporary targeted energy profits levy of 25% on profits of oil and gas firms

Mr Sunak has confirmed a temporary windfall tax on oil and gas giants – labelling it a “temporary targeted energy profits levy”.

The levy will be at a rate of 25% on the extraordinary profits of oil and gas firms, which have surged because of the invasion of Ukraine and the coronavirus pandemic.

The chancellor said the levy will include a “new 80% investment allowance” to incentivize the reinvestment of profits – they will get 91p in tax relief for every £1 they invest in oil and gas extraction in the UK.

Winter fuel allowance

Mr Sunak announced a one-off payment of £300 to pensioners who are receiving the winter fuel allowance.

The payment is on top of the usual winter fuel allowance, which is an annual one-off payment to help pensioners pay for heating during the winter months – the allowance is usually between £100 and £300

More help for people on Benefits and Universal Credit

The chancellor has announced a one-off payment of £650 to those on the lowest incomes paid in two instalments – in July and Autumn for everyone on means-tested benefits.

The payments will be paid directly into bank accounts and will be paid to more than eight million low-income households on Universal Credit, Tax Credits, Pension Credit, and legacy benefits.

Mr Sunak said for those receiving disability benefits there will be a one-off disability cost-of-living payment of £150.

Millions of households will receive a £400 discount on their energy bills

Households will no longer have to repay the discount and the grant will now be doubled to a £400 discount on bills from October.

Household Support

Extra £500m for household support fund delivered by local councils, increasing it to a total £1.5bn

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