NatWest chair says best way to help poorest is through benefits

Howard Davies: ‘The squeeze on living standards as a result of higher energy prices and higher food prices is really extraordinary.’ Photograph: Jonathan Hordle/Rex

The chairman of NatWest bank has argued that changes to the benefits system would be the most effective way for the government to help the poorest families struggling to cope with the cost of living crisis, instead of cutting taxes that also give the wealthy a financial boost.

Sir Howard Davies, a former deputy governor of the Bank of England, said soaring energy bills and rampant inflation were disproportionately affecting the poorest fifth of households and they should be the focus of financial support measures.