Higher gas prices are likely to hit consumers hard from the start of April (Owen Humphreys/PA)
(Picture: PA Wire)The UK is “looking at every option” to aid the cost of living crisis, Nadhim Zahawi has said.
Speaking on Sunday, the Education Secretary was quizzed over the possbility of introducing a windfall tax on energy companies.
The Government has previously resisted introducing a tax but calls have increased to enact a U-turn on the decision as Britons are faced with surging energy costs.
Asked about a windfall tax, Mr Zahawi told Sky’s Sophy Ridge: “We will look at all the options. I with the Chancellor, Prime Minister and Cabinet will look at every option.”
Mr Zahawi spoke about the importance of investment from oil and gas producers, adding: “If you apply a windfall tax, they will probably have to reduce or take away their dividend. Who receives the dividend? Pensioners through their pension funds.
“Investment has to be real, which is what I think Rishi Sunak will demand of all these companies and to see a roadmap towards that investment. We’re not taking any options off the table.”
Mr Zahawi added: “We want to see their investment but also remember it’s pensioners who basically get the dividend from these companies, and if they’re going to cut their dividend because they have had a windfall tax, then that’ll make a difference to pensioners.”
After highlighting inflation elsewhere in the world, Mr Zahawi said of the Chancellor: “When he finds the best way to target the help to those people who really need it, he will make an announcement, I’m certain.”
Former Health and Foreign Secretary, Jeremy Hunt, however said “all options are on the table so watch this space”.
Although there is public support for a one off levy on energy companies, some Cabinet ministers believe money should be used on energy infrastructre rather than passing money onto families.
Mr Sunak did say during the week, that energy companies must increased invesment back into the UK economy, and if that were not to happen, “no option is off the table”.
Amid surging energy costs, it was revealed BP made a profit of £5billion in the first three months of the year.
