Shell out to help hard-up households

A WINDFALL tax on the bumper profits of oil and gas giants could raise £4billion to help cash-strapped households, claims Greenpeace.

Its estimate came as Shell is today due to announce profits of almost £4.3billion for the last three months of 2021 – and £13.5billion for the year.

The bumper sum is due in part to soaring gas and oil prices that have hammered households.

Oil and gas companies currently pay around 40% total tax on the profits arising from their extraction of fossil fuels from the North Sea.

Greenpeace UK calculated how much revenue the government could raise by increasing it to 70%, which it says is the percentage levied in Angola and Trinidad, but still less than in countries such as Norway.

It estimated this could bring in £3.9billion for the Treasury, enough to cover a £500 one-off payment to households struggling with bills being considered by the government. Greenpeace UK’s policy director Dr Doug Parr said: “It’s a tale of two cities. The gas price crunch is pumping billions into the coffers of fossil fuel giants while raiding the purses of every household, leaving millions to choose between heating and eating.

“For a government so keen on levelling up, this is surely an opportunity not to be missed.”