Value of people’s pensions will plummet if you hit oil & gas firms with windfall tax, warns minister

PENSIONS will plummet if ministers slap a windfall tax on oil and gas giants, a senior Tory has warned.

Education Secretary Nadhim Zahawi said there was no pain-free way to solve the cost-of-living crisis as Tory tensions over the proposals rumbled on.

PA

Nadhim Zahawi said there was no pain-free way to solve the cost-of-living crisis[/caption]

The Chancellor is said to be looking at whether to charge different levies on companies depending on how much they invest in UK energy networks.

Yesterday, Mr Zahawi said ministers were considering all the options — but stressed there were downsides to introducing new taxes.

He told Sky: “If you apply a windfall tax, firms will have to reduce or take away their dividend.

“Who receives the dividend? Pensioners through their pension funds.”

However, ex-Treasury minister Jesse Norman backed the idea, saying Margaret Thatcher once put forward a similar move.

He said: “These are extraordinary times, and the arguments against it at are very weak.”

The row came amid fears energy bills could rise by up to £1,000 this winter to £3,000.

Labour have repeatedly called for a windfall tax to help those struggling to make ends meet.

But last night the Treasury accused Keir Starmer’s party of having a £90billion black hole in its spending plans.

Chief Secretary to the Treasury Simon Clarke said: “This new dossier shows how the Labour Party would wreak havoc on the economy.

“This is the same old Labour.”

But Labour hit back, saying: “We have set out how all of our policies will be paid for.”