“The Conservative party has to get this right. If we don’t, we could end up with the first antisemitic leader of a Western nation since the Second World War."
Shadow Chancellor John McDonnell quickly responded, calling Mr Hancock's remark "a disgrace".
A Labour source added: "This baseless political attack rings hollow from a minister in a party that has supported governments that actively promote antisemitic policies in Hungary and Poland, and has spent the week wooing Trump - the man who refused to condemn neo-fascists in Charlottesville who chanted ‘Jews will not replace us’."
Mr Hancock is one of 11 candidates vying to replace Theresa May, who stands down on Friday, after which the contest will formally begin.
Shortly before Wednesday's hustings, he told HuffPost he was the best candidate because he would "get sh*t done".