Cost of living payments for millions as Sunak announces windfall tax on oil and gas profits – as it happened

6.01pm BST

Early evening summary

• Rishi Sunak has announced a £15bn package of support for households struggling with the cost of living crisis, part-funded by a £5bn windfall tax on energy companies. My colleague Hilary Osborne has more details of how the new payments will work here.

• Sunak has confirmed that benefits will be uprated next year in line with the rate of inflation this September. That is the normal practice, but with inflation at its highest level for 40 years, there has been concern the government might uprate in line with a lower rate. In his Q&A with Martin Lewis a few minutes ago Sunak stressed this in response to concerns that claimants were not getting enough help, saying that because inflation would be high this year, that would mean a significant increase in the value of benefits next April. Sky’s Ed Conway explains the significance of this here.

But arguably the single most expensive item was the bit which wasn’t costed at all
That bit the chx rushed through in his speech: benefits/pensions will be raised in line with Sept inflation.
This will cost A LOT.
To see how much, let’s shift the y axis. Here’s today’s measures: pic.twitter.com/48lalCaSzM

— Ed Conway (@EdConwaySky) May 26, 2022

If inflation is as expected this autumn (c.10%) then a rough calculation suggests it could push up the pensions/benefits bill by maybe £25bn.
That’s more than the ENTIRE package today (£15bn).
It’s MASSIVE.
But because this isn’t a Budget HMT doesn’t have to show its workings… pic.twitter.com/lGk2mrvkuH

— Ed Conway (@EdConwaySky) May 26, 2022

• The government’s £15bn cost of living handout is not enough to help struggling families, and only a “drop in the ocean” compared with the pressures consumers are facing, the boss of Asda has said.

• The Metropolitan police investigated parties inside Downing Street “without fear or favour”, and found no evidence that Boris Johnson had breached Covid regulations more than once, the force’s interim head has insisted.

• Four Conservative MPs have called for Boris Johnson to resign in the aftermath of the Sue Gray report, saying they cannot reconcile themselves with his previous statements on Partygate.

• The former Labour MP Claudia Webbe has lost an appeal against her conviction for harassing a love rival, but her sentence has been reduced.
  

Rishi Sunak making his announcement in the Commons today. Photograph: Parliament/Jessica Taylor

Updated at 6.26pm BST

5.54pm BST

And this is from the Green MP Caroline Lucas on the government’s decision to exempt renewables from the new investment allowance for energy companies. (See 5.36pm.)

Can't quite believe what I'm reading 👀

The Govt really does say rebate on #windfalltax only applies if energy companies extract *more* oil & gas

Bone-headedly stupid, even by this Govt's standards, to be incentivising climate-wrecking fossil fuels#keepitintheground

— Caroline Lucas (@CarolineLucas) May 26, 2022