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The RSPB has found that chilli powder on peanuts will deter squirrels from eating them but does not harm birds

This is a tip from the RSPB
• You need a bowl
• Your nuts
• A packet of chilli powder
Put the bird nuts in the bowl and add a few pinches of chilli powder. Mix well and add the chilli powder-coated nuts back into the bird feeder. It won’t hurt the squirrels, it will just put them off. Birds have taste buds that work in a different way from mammals, such as squirrels, which means they don’t taste the chilli and will continue to feed while the squirrels will avoid it.