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Rishi Sunak has denied his emergency cost of living funding announcement was engineered as a ‘fig leaf to cover up’ the Sue Gray report.

The chancellor was grilled by money saving expert Martin Lewis after he unveiled a £15 billion emergency package of measures to help people through the worst squeeze on incomes in a generation.

Critics have accused the government of timing the announcement to move attention away from damning criticism of Boris Johnson over lockdown breaches in Downing Street.

Mr Lewis said the timing of the announcement had left a ‘slightly ill taste in the mouth’ for some and voiced his reader’s concerns that the perceived delay had impacted people’s mental health.

The chancellor – who was fined for breaching lockdown laws along with the prime minister – denied the report’s publication informed his policy.

Speaking to the money MoneySavingExpert.com founder, he said: ‘I can categorically assure you that had no bearing on the timing for us announcing the support, I can give my absolute assurance on that and my word.’

He said it had been necessary to wait to act in order to get a better sense of where energy prices would be by the autumn.

Ofgem signalled this week an £800 rise to the price cap in October is expected, taking annual bills to £2,800 for most households.

Mr Sunak said ‘no chancellor can solve every problem’ but hinted he was open to intervening again next year if the cost of living balance has not been restored.

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Asked if he would announce new measures in the spring if necessary, the chancellor said: ‘I think people can judge me by my actions in the time I’ve been doing this job.

‘I’m responsive to the situation the country is in and act to support people where we can, helping the most vulnerable and doing so in a responsible way to make sure the economy and country are strong.

‘I will continue to act that way, I don’t know what prices will be next year.’

He said increases in benefits and pensions for next year are likely to be high as they will be linked to the inflation rate as of September.

Mr Sunak added: ‘That should give people an enormous sense of assurance – we’re providing help to get people to that point next year when incomes go up.’

Earlier today, he confirmed a major U-turn by adopting Labour’s policy to partly fund the assistance by imposing a windfall tax on the rising profits of oil and gas companies.

A previously announced £200 rebate for households to help cover spiralling energy costs has been upgraded to £400 and will be paid in October.

Crucially, it will no longer need to be repaid in higher bills over the next five years, as was the case under the original scheme.

Further targeted measures will help the most vulnerable households deal with the crisis.

People on the lowest incomes – which covers those on Universal Credit, Tax Credits, Pension Credit and legacy benefits – will receive a £650 one-off payment.

Additional one-off payments of £300 will go to pensioners alongside the winter fuel payment this winter, at a cost of £2.5 billion.

Worth £900 million, those receiving disability benefits will receive a £150 cost of living payment by September.

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