British director Ken Loach has said “every penny” raised from Israeli screenings of his new film ‘I, Daniel Blake’ will go towards Palestinian grassroots groups chosen by the group campaigning to boycott Israel.

Loach, a well-known critic of Israeli government policy, made the announcement in The Guardian this week, after explaining that the film “was sold to Israel by our sales agent, and is now showing there”.

He said: “Every penny from the sale of ‘I Daniel Blake’ that comes to Sixteen Films or the sales company from Israeli distributors will go to grassroots Palestinian organisations fighting oppression, after consultation with the Boycott, Divestment and Sanctions movement.”

Earlier this month, Loach waged an unsuccessful attempt to press rock band Radiohead into cancelling its show in Tel Aviv this week, a call rejected by frontman Thom Yorke, who said playing in Israel did not amount to endorsing Israeli government policies.

James Sorene, chief executive of UK-Israel think-tank BICOM, said Loach was “using his bully pulpit to shout at Radiohead for refusing to agree with his unpalatable views about Israel,” adding that the sight was “distinctly unedifying”.