The Chancellor was forced to unveil emergency measures as part of a £15bn package to tackle the impact of soaring inflation, which has reached a 40-year high. As well as the universal payment, there was targeted support for the poorest, the elderly and the disabled.

The Chancellor acknowledged that high inflation is causing “acute distress” for people in the country, telling MPs: “I know they are worried, I know people are struggling.”

Sunak said the government “will not sit idly by while there is a risk that some in our country might be set so far back they might never recover”.

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

The measures announced by the Chancellor include a one-off £650 payment to more than eight million low-income households on benefits; a £300 payment to pensioner households, and £150 to individuals receiving disability benefits.