After five years of fighting for compensation, Dexion pensioners' compensation is to be taxed at top rate.

Dexion pensioners who have campaigned for five years following the loss of their occupational pensions have been stunned to discover that as they will receive five years’ worth monies in a lump sum, many will be taxed at 40%.

Mike Penning, who has been a long-time supporter of the campaigners, said: “It's completely immoral for my constituents to be penalised because the Government took five years to compensate them for the injustice of having their pensions stolen.

"They took the Government's compensation in good faith and thought that it was the end of their long fight.

"They are being betrayed because of the Government's incompetence."