ANTI-poverty campaigners in York have welcomed today's emergency steps to ease the cost of living crisis for hard-hit families.

Rishi Sunak was forced to unveil measures as part of a £15 billion package to tackle the impact of soaring inflation, which has hit a 40-year high.

They include a £400 discount off energy bills for households while a £5 billion tax will be levied on oil and gas giants.

There was also targeted support for the poorest, the elderly and the disabled.

The £6 billion announcement of £400 in universal support from October replaces the initial plan for a £200 loan, with Mr Sunak scrapping the requirement to repay the money.

Eight million low-income households on benefits will get a £650 payment, paid in two stages in July and autumn which will cost the Treasury £5billion.

Pensioners who get winter fuel allowance will get £300 extra in November/ December.

People receiving disability benefits will get £150, paid by September.

Paul Kissack, chief executive of the York-based Joseph Rowntree Foundation, which works to solve UK poverty, said: “For people living with worry and fear through this cost of living crisis, and especially for those going without essentials, today’s statement will offer very welcome relief.

"It is right to target help at those on low incomes, who are least able to bear the shock of soaring energy bills.

“We are pleased by the commitment to uprate benefits in line with inflation as usual, though it is still crucial that the government invests on an ongoing basis in ensuring that everyone can get through difficult times and afford the essentials.

“The measures announced today suggest that the Chancellor has recognised and taken action on an immediate need, and we hope to work with him to strengthen the social security system in the long term so that fewer people approach the brink when times are hard.”

The Chancellor acknowledged that high inflation is causing acute distress for people.

The plans will be funded by around £10 billion of extra borrowing, but Mr Sunak insisted he had a responsible fiscal policy.

The package would mean that almost all of the eight million most vulnerable households would receive at least £1,200 of support, including a £150 council tax rebate which has already been announced.

A further £500 million will be allocated to the fund administered by councils to help households facing extra hardship.

The Chancellor stressed the need to keep the public finances under control and set out how a tax on oil and gas firms – who have benefited from globally high prices driven by post-pandemic demand and the war in Ukraine – would raise around £5 billion to help meet the cost.

Consumers are braced for the energy price cap to rise by more than £800 to £2,800 in October as the squeeze on living standards continues.

The Chancellor said: “We can get inflation under control. It is not some abstract force outside our grasp. It may take time, but we have the tools we need and the resolve it will take to reduce inflation.”