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The US Congress passed an economic stimulus package of $152 billion (£78.26 billion) yesterday in an attempt to help its sagging economy.

The plan to provide rebates and tax rebates is aimed primarily at low-income people, with rebates phasing out at higher-income levels.

Individuals will receive up to $600 (£308.93), while working couples will get $1,200 (£617.86) and $300 (£154.46) for each child in distributions to more than 130 million Americans.

"We're going to have the cheques out beginning of May and this is largely going to be done by the time summer's over," said US treasury secretary Henry Paulson in a statement yesterday.

The package totals a little more than one per cent of US gross domestic product. President George Bush commended the proposal, calling it "robust, broad-based, timely" and "effective" in a White House statement.

"This bill well help to stimulate consumer spending and accelerate needed business investment," he added.

Addressing worries of a US recession, Mr Bush said: "My advisors and many outside experts expect that our economy will continue to grow over he coming year, but at a slower rate than we have enjoyed for the past few years."

The effects of the US mortgage collapse last summer and ensuing credit crunch has rippled across the globe decreasing consumer spending and sparking serious concerns about the health of the US economy.

The bill passed by the House in a vote of 380 to 34 yesterday night is more than the original proposal of $136 billion, and signals the end to a stand-off between Democrats and Republicans about how much to distribute to taxpayers.

The move providing measures to help veterans and disabled people will increase the US government's already large spending deficit.

US markets found a boost on the news, with the Dow Jones industrial average climbing 0.38 per cent, while the S&P 500 and Nasdaq composite added 0.79 per cent and 0.63 respectively.