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< Back to all posts 06 April 2022

National Insurance is up while taxpayer subsidies boost Shell’s profits

This week the 2.5% increase to National Insurance Contributions took effect.

It is really important to emphasise that this was a political choice and other options were available to the government to help fund social care.

It would have been better if the government had closed the tax loopholes used by the wealthy and aligned capital gains tax with income tax. This could raise roughly the same amount as the National Insurance increase – £11 billion.

It comes in the same week it was revealed that Shell received more than $120 million in subsidies from the UK Treasury in 2021 , despite record gas prices and high oil prices.

So, in the year Shell made $19.3 billion in profit, they paid zero tax. Instead, the UK government paid Shell more than $120 million.

This revelation only adds to pressure on Boris Johnson and Rishi Sunak to impose a windfall tax on oil and gas companies. This would raise money that could go to supporting struggling people around the country . We are joining with campaigners from the climate movement and others to force Sunak to take action.

At a time when ordinary families are facing the burden of extraordinary energy bills, it’s only right that measures like a windfall tax be considered as a way of funding extra support.