News - End Fuel Poverty Coalition

BP profits more than double as Iran conflict delivers war windfall

BP has reported underlying profits of $3.2 billion (£2.4 billion) for the first quarter of 2026, more than double the figure from a year earlier, after oil and gas prices surged following the outbreak of conflict in the Middle East.

The result beat analyst expectations and was driven largely by BP’s oil trading division, which posted profits of $2.5 billion (£1.84 billion) for the quarter, up from just $103 million (£76.2 million) a year ago.

New analysis by the End Fuel Poverty Coalition shows that energy firms posted over £23.1 billion in profit from UK operations in 2025, before any Iran conflict windfall had been counted.

A spokesperson for the End Fuel Poverty Coalition said:

“These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay. That is not a coincidence, it is a consequence of the way our energy system is structured.

“While the energy industry lobbies against the Energy Profits Levy, we are now seeing the level of profits being posted which shows why it is so necessary.

“Household bills are forecast to surge again from July. The Government must respond with emergency support for the hardest-hit households and accelerate the shift to a renewables-led energy system that insulates people from price shocks caused by our exposure to oil and gas markets.”

Robert Palmer, Uplift deputy director, said:

“It’s appalling that while millions are worrying over energy bills, oil giants like BP are raking in billions.

“Today the oil major has been given a further boost with an unearned windfall because of the Iran conflict. It’s just the first of the bumper profits oil and gas firms will make as this crisis drags on.

“Worse, BP is also rowing back on the very things, like investment in wind energy and solar, that will get us off the fossil fuel rollercoaster. It wants us to stay hooked on oil and gas so it can keep profiting.

“The only sensible way to counter energy shocks is by getting off oil and gas through renewables and upgrading our homes with solar power and heat pumps.

“BP clearly has no commercial interest in transitioning away from fossil fuels – and shows no concern for the public’s need for an affordable energy supply and a safe climate.”

The End Fuel Poverty Coalition has written to Ministers calling for emergency support for the hardest-hit households ahead of the July price cap rise, including those on prepayment meters, off-gas-grid homes relying on heating oil and LPG, and households in energy debt.

Energy profits up as households brace for higher bills

Energy firms posted over £23.1 billion in profit from UK operations in 2025, according to new analysis of company reports. [1]

The figures, based on the returns of 30 companies heavily involved in the UK energy system, are an increase from £22.7 billion on 2024 numbers, but a slight decrease from the £27.6 billion posted in 2023 during the height of the Russian-triggered price shock.

The data does not take into account returns generated by the US-Israel conflict with Iran, where BP has already suggested it will make ‘exceptional’ returns and Shell could bank up to £5 billion in oil price profits. The next corporate profits season starts on Tuesday with BP posting its quarter one results.

Households on heating oil and LPG energy have already seen energy costs soar, prompting the Government to provide limited emergency relief and extend support for these households to move off oil and gas.

All households will see an increase in energy bills from 1 July when the next Ofgem price cap period starts.

According to the Common Wealth think tank, around a quarter of an energy bill is taken in profit by a range of firms involved in the industry. But while the Windfall Tax continues to be attacked by corporate lobbyists, the public back the Tax by a margin of two to one and ministers last week extended the tax paid by some energy giants.

Additionally, energy company bosses have been seeing their personal wealth grow off the back of the current crisis, with Harbour Energy’s Linda Z Cook seeing the value of her shareholding rise by more than £4 million to £26 million in just the first four weeks of the conflict.

Simon Francis, The End Fuel Poverty Coalition said:

“These figures are a damning verdict on an energy system that is failing the people it is supposed to serve.

“Households were already struggling with rising bills before Russia invaded Ukraine and sent gas prices through the roof. Now Trump’s war in Iran is delivering a third hammer blow.

“While households face another bill rise in July and millions remain trapped in fuel poverty, the companies that control our energy supply are cashing in.”

Robert Palmer, Uplift Deputy Director, said:

“It’s appalling that while millions are worrying over energy bills, these figures show that even before the war in Iran, energy companies were raking in billions of profits.

“The war is going to make all of this worse – with higher energy bills for most of us, while around the world oil companies are making an obscene $30 million (£22 million) an hour in unearned profits.

“The UK’s dependence on oil and gas is making all of us poorer. All except for the oil bosses and their shareholders who, once again, are profiting at our expense.

“That’s why we must ramp up renewables, and upgrade homes with solar power, batteries and heat pumps. It is the only way to insulate ourselves from energy shocks and protect the climate. We also need to support those who need it most with financial help. We should be putting these profits back in people’s pockets, not making the public pay for what is a humanitarian and economic disaster.”

Researchers working for the End Fuel Poverty Coalition examined the declared profits of 30 energy firms, from across the industry, including producers such as Shell and Equinor, grid operators including National Grid and UK Power Networks and suppliers such as British Gas, as well as energy trading companies. Any firms posting losses in this period are taken into account and five firms monitored are yet to file accounts for 2025.

ENDS

[1] The data in this tracker has been collated from publicly available company reports and industry sources, with profits adjusted where possible to reflect UK operations. For multinational businesses, UK profit estimates are based on disclosed proportions of revenue, production, or operating assets attributable to the UK, or on reasonable assumptions using sector benchmarks where disclosure is limited. The figures are indicative, providing a consistent basis to assess trends in UK energy-sector profitability and its relationship to household energy costs. These measures differ from company to company due to reporting processes and regulatory requirements in different jurisdictions. In determining which measure of profitability to use, the research has prioritised the measure preferred in the company’s own accounts. The totals declared here include offsetting any losses made by some of the firms in some years of the period examined. 30 firms were monitored, with 26 making a profit over 5 years. One is yet to post results. These firms were selected by the researchers to create a cross section of the energy industry and to reflect those most frequently covered in the media.

Full information available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/

Data as at 31 March 2026.

The data was compiled by freelance business journalist David Craik and examined and peer-reviewed by a business analyst with board-level experience within complex multinational businesses.

David’s experience has included writing business and city news and features for national newspapers and magazines such as The Daily Mirror, Sunday Times, Wall Street Journal, Scotsman and Daily Express. Much of his content focuses on company financial results and reports in the energy sector and on personal finance issues including wealth management, property, investing and managing household budgets and bills.

Ofgem set to get new powers to fight for consumers

Ministers plan to make major changes to give Ofgem new consumer protection powers.

These include a role for the regulator to enforce consumer law directly, meaning it will no longer need to go through a courts process to make sure customers get what they are owed if companies treat them unfairly.

Reforms to Ofgem’s remit to focus on economic and consumer protection and ensure every energy consumer is protected, including the ability to regulate in new areas of the market, such as heating oil and LPG.

Measures to ensure energy bosses are held accountable, with powers for Ofgem to ban their bonuses if they break the rules.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The Government is right to give Ofgem more teeth, a broader role in regulating businesses across the energy sector and a clearer focus on ensuring the energy market works for consumers.

“Stronger enforcement powers, executive accountability and the ability to step in when the market fails are exactly what campaigners have been calling for. But Ministers must be clear that if the duties placed on Ofgem pull in different directions, vulnerable households must always come first.

“And of course, stronger regulation alone will not pay anyone’s energy bill. As part of the reforms, Ministers must stand ready to direct Ofgem to help bring down bills. This could mean delivering a social tariff for vulnerable customers, recovering excess network profits or tackling gas network ownership, market structures and technical processes that have for too long helped to skew the energy system in favour of energy giants.

“We look forward to working with ministers and officials to ensure that the new arrangements deliver for the millions of people who still cannot afford to heat their homes.”

Government announces fresh range of changes to bring down energy costs

Energy Secretary Ed Miliband has set out a package of measures designed to reduce the country’s dependence on volatile costs of fossil fuels.

Recent polling carried out for the End Fuel Poverty Coalition found that 77% of the public agreed that ‘history just keeps repeating itself with energy prices’ and 72% felt that ‘our reliance on oil and gas makes us vulnerable to global price shocks.’ [1]

Ministers have backed the public’s view, arguing that two fossil fuel shocks in less than five years demonstrate that “the era of fossil fuel security is over, and the era of clean energy security must come of age.”

As part of the package of measures, the Government has increased support for households using heating oil and LPG to move to heat pumps by raising the boiler upgrade scheme grants to a total of £9,000. Moves will also be taken to make installing heat pumps easier in flats.

An additional £100 million in funding will help deliver energy upgrades to 100,000 social homes through the Warm Homes Plan, on top of the £1.2 billion pledged earlier this year.

A £25 million pilot scheme, delivered via local authorities and mayors, will install plug-in solar panels for low-income households.

Measures taken by the Chancellor include a new carrot and stick approach to reforming the cost of some electricity generation where energy firms are incentivised to lower prices by moving to new contracts or face higher windfall taxes.

Other announcements include:

A cross-government drive to build renewables on public estate land and expand solar-installation support for schools and colleges.
Legislation and consultation to expand EV charging provision, including cross-pavement charging, new and renovated buildings and easier access for renters and leaseholders.
A wide-ranging overhaul of planning, land access and grid connection rules to speed up clean energy infrastructure.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented

“Every spike in global gas markets feeds directly into household energy costs, and people in fuel poverty often pay the heaviest price.

“Research shows that the public understands this and wants to take action, but needs support to invest in energy efficiency measures.

“Any speeding up of the Warm Homes Plan will deliver more support to households quicker than planned. However, delivery through this Plan must include locally provided, specialist advice to ensure households choose the right options and a Warm Homes Guarantee so that consumers are sure to see the benefits of new technology.

“With bills forecast to rise from July, moves to get energy efficiency measures into homes and plans to delink the cost of gas from electricity bills can’t come soon enough. But until these reforms take effect, it’s clear that households will also need support with their energy costs.

“The households most exposed to that increase need support now, not just long-term structural change. That means help for those on low incomes, in poorly insulated homes, or relying on heating oil and LPG outside the price cap.”

Gavin Smart, chief executive, Chartered Institute of Housing, said:

“As another international crisis starts to push energy bills even higher, it is right that the government looks to accelerate the Warm Homes Plan.

“Every piece of loft insulation or solar panel that we install helps to keep homes warmer and cheaper to power, while reducing our reliance on volatile fossil fuel markets. CIH and our members will continue to support the government with this work in these crucial months before next winter.”

Jonathan Bean from Fuel Poverty Action, added:

“Any progress is welcome, but we are still a million miles from fair and affordable energy for all. Without bigger changes, millions of people will still face cold homes and unaffordable electricity prices.

“Our energy system will still be dominated by huge profits and high prices. Half-baked plans for air-to-air heat pumps and plug-in solar will still fail most people living in flats.

“Those most in need will still not get their fair share of the cheap clean energy we are generating. Government must make green fair, and deliver on its election promise to reduce bills by £300.”

National Energy Action responded on LinkedIn, commenting:

“Measures that deliver genuinely cheaper and more stable electricity prices for households, with a particular focus on those on low incomes or experiencing energy debt, are positive for those in fuel poverty. Any market intervention should be assessed against a clear test: whether it reduces energy bills in practice and improves affordability, enabling fuel poor households to heat their homes to a safe and adequate standard.

“More funding for heating oil and LPG customers in the Boiler Upgrade Scheme offers an opportunity to reduce their reliance on volatile fossil fuel markets. Many LPG households experience deep vulnerability, often combining low incomes with high levels of disability or long‑term illness. To be effective and equitable, the scheme must proactively reach and support low‑income, fuel poor households, particularly those who are least likely to seek support independently. Failure to do so risks excluding those who stand to benefit most.

“Additional funding for the Social Housing Fund has the potential to progress the government’s fuel poverty targets. Around 13% of social renters live in fuel poverty, and increased investment can deliver warmer, healthier homes for some of the most financially vulnerable households

“Increased support for low‑income households to access plug‑in solar will benefit fuel poor households, as a significant proportion live in flats, where rooftop solar is harder to obtain. Plug‑in solar can enable these households to benefit from self‑generation and reduced reliance on the grid. This support should be accompanied by clear advice on optimal tariffs and integrated with energy efficiency measures, such as insulation, to maximise bill reductions and long‑term affordability.”

ENDS

[1] Survation were commissioned by the End Fuel Poverty Coalition to interview 2,047 people from 2-7 April 2026. Data were weighted to the profile of the UK. Data was weighted by respondent’s sex, age, region, household income, highest qualification, and past vote (GE24, EU16). Research tables are available here.

Heating oil and LPG customers to get additional support to install heat pumps

The Government has announced an increase to the Boiler Upgrade Scheme (BUS) grant for properties heated by oil and LPG. The scheme forms part of the Government’s Warm Homes Plan and provides upfront capital grants to support the installation of heat pumps in homes and non-domestic buildings in England and Wales.

The existing grant currently stands at £7,500 for air source and ground source heat pumps and the increase to £9,000 specifically for oil and LPG properties represents a recognition that these households face higher costs and have greater exposure to global fossil fuel price shocks than those on the gas grid.

The scheme is available to owner-occupiers in England and Wales replacing an existing fossil fuel heating system. The grant is applied by an MCS-certified installer and deducted directly from the installation cost , meaning households do not need to fund the full amount upfront before claiming back.

A spokesperson for the End Fuel Poverty Coalition commented:

“Heating Oil and LPG customers have been among the hardest hit by the current crisis. The three million households relying on these fuels sit outside the energy price cap and have no equivalent protection when global prices spike.

“These households are disproportionately in rural areas, have lower incomes, and live in older, harder-to-upgrade properties.

“A £9,000 grant for these homes will be very welcome, but it may not totally bridge the gap for those who cannot afford the remaining costs or whose homes need substantial preparatory work.

“Therefore, the expansion of this scheme must be accompanied by specialist local advice for households, stronger consumer protections during the works, and targeted additional support for those who cannot meet the shortfall.

“The measure of success is not how many grants are issued, but whether the households most exposed to fossil fuel price shocks are genuinely better off as a result.”

Chancellor raises Windfall Tax levies on electricity generators

The Government has announced it will increase the electricity generator levy (EGL) from 45% to 55%, targeting the excess profits of some nuclear, biomass and renewable generators.

To reduce the exposure to this Windfall Tax, ministers are proposing that these “legacy” generators, which supply around a third of Britain’s power, could move voluntarily onto lower fixed-price contracts to help insulate consumers from volatile global gas prices and bring down bills.

Recent research for the End Fuel Poverty Coalition, found that almost half the public (47%) believe that windfall taxes should actually be extended to more companies within the energy industry. 21% of the public opposed such a move and 32% had no opinion.

A spokesperson for the End Fuel Poverty Coalition, commented:

“For too long, households and businesses have been paying electricity bills linked to and inflated by a gas market they have no control over. This is a structural failure in how our energy system is priced and it has cost households dearly. Raising the levy on generators that pocket windfall profits when bills soar is the right thing to do.

“The carrot and stick approach where energy firms are incentivised to lower prices by moving to new contracts, or face higher taxes, is a sensible one. If these new contracts are properly designed and genuinely deliver for consumers, it could lower prices overall. The critical test is whether households, particularly those least able to pay, actually see the benefit on their bills and by when.

“The Government is right to act, but these measures must be the beginning and not the end of reform. Millions of households are still struggling with bills that are significantly higher than before the start of the energy crisis in 2021. Any revenue raised from the levy increase must be used to support those most exposed to fuel poverty and Ministers must not lose sight of the need for a wider overhaul of how electricity is priced in this country.”

Energy bills due to increase 12% from 1 July

Energy bills are now expected to increase by £196 a year from 1st July.

While the new analyst projections are not as high as first feared, oil and gas wholesale markets remain volatile and households will face steep rises in their bills.

Cornwall Insight said its prediction for Ofgem’s cap from July to September now stands at £1,837 for a typical dual fuel household, an increase of 12% on April’s cap. In April, energy bills fell due to measures taken by the Government in the 2024 Budget.

Meanwhile, around 24 million people are worried about their ability to pay their energy bill over the next six months according to debt charity StepChange as it called for an energy social tariff to help struggling households.

A spokesperson for the End Fuel Poverty Coalition, said:
“The damage from the latest oil and gas price crisis is already baked into price cap predictions. Millions of households in fuel poverty are going to be asked to find more money for energy on top of prices that are already unaffordable.

“Fossil fuel wholesale markets remain volatile, global events continue to dictate what we pay for energy and families already struggling with energy debt have no buffer left to absorb further rises.

“A smaller than planned increase is not relief. It is still an increase that will push more people into crisis and generate higher profits for the oil and gas industry.

“The Government must set out what help is going to be available for households both in the short and long term.”

Public demands Government help to end exposure to energy price shocks

British households want to break free from the cycle of fossil fuel price shocks for good, with new polling showing that the ongoing conflict with Iran has prompted more than a third of adults to increase their interest in new technologies to cut their bills and reduce their exposure to volatile global markets.

Research by Survation for the End Fuel Poverty Coalition finds that 35% of the public have become more interested in home energy technology since the Iran conflict began. Of these people, 45% are now more interested in getting solar panels on their roofs, 36% would like more home insulation, 35% are more interested in the new plug in solar option and 26% are now more interested in getting a heat pump.

But with 60% saying such options are simply too expensive, the public is calling on the Government to act, with 71% wanting grants for insulation and 68% seeking support for solar panels and heat pumps.

With 83% of the public worried about energy bills and 44% saying they would be unable to afford the expected £228 annual increase in energy bills from 1 July, 73% want to see targeted support for households and 67% want to see help for all households with energy bills.

Heating Oil and LPG customers have already seen the cost of energy increase and as price rises loom for even more households from 1 July, a majority of the public (64%) believe that the energy industry is profiteering from the conflict in Iran and a majority say that ending the Windfall Tax now would be the wrong thing to do.

Simon Francis, End Fuel Poverty Coalition coordinator said:

“The public has had enough of history repeating itself. They want to protect themselves from oil and gas price shocks for good, and the Government has both the means and the mandate to help them do it.

“Energy firms made £125bn in profits on their UK operations over the last five years and companies like BP are already expecting bumper profits from the fresh crisis. The Windfall Tax revenue raised by the Treasury should be going further to help households cut their bills for good.

“The Government’s Warm Homes Plan is the right vehicle, but now is the moment to make it even more ambitious and to ensure it comes with a guarantee that every upgraded home will see energy efficiency improve and bills come down.”

Three-quarters of the public (76%) hold Donald Trump responsible for energy bill increases set to hit UK households, while 65% also blame the energy industry directly. The anger runs deep enough that 63% of respondents agree the increases amount to a Trump Tax on their bills.

Robert Palmer, Deputy Director of Uplift, added:

“People know they’re being hit with a Trump Tax, plain and simple. We’re facing higher energy bills, rocketing fuel prices and more expensive mortgages.

“Our dependence on fossil fuels is making all of us poorer. All except for the oil and gas bosses and their shareholders who – once again – are set to cash in at our expense.

“Now Trump is demanding that the UK doubles down on drilling. But we can’t drill our way out of this crisis. More drilling won’t take a penny off our bills, and would have no meaningful impact on the UK’s supply of gas. We’ve burned most of what was in the North Sea already.

“The only way to insulate ourselves from these risks is to press on with renewables, like wind, and upgrade our homes with solar power and heat pumps, so we can free ourselves from oil and gas and ensure we have a liveable planet. And this polling shows the public gets this, even if Donald Trump doesn’t.

“The Government needs to help people who want to upgrade their homes and have more control of their energy bills, as well as billpayers who are going to struggle.

“This is a Trump Tax, plain and simple. It’s likely to be a painful economic hit to the UK with higher energy bills, rocketing food prices and more expensive mortgages.”

ENDS

Survation were commissioned by the End Fuel Poverty Coalition to interview 2,047 people from 2-7 April 2026. Data were weighted to the profile of the UK. Data was weighted by respondent’s sex, age, region, household income, highest qualification, and past vote (GE24, EU16).

Research tables can be downloaded here.

Two-thirds of households fear for finances as energy bills set to rise

Research carried out for Lightning Reach, has found households suffering widespread financial anxiety, with two-thirds concerned about their finances over the coming months.

Nearly two-fifths said their financial situation had worsened compared with the same point last year. Three in ten had cut back on essentials including food and heating, while a quarter had used savings to cover everyday costs and one in six had borrowed from family or friends.

More than half of those surveyed said they were carrying debt, with 42% reporting that their debt had increased. Global instability has contributed to rising prices and higher mortgage rates, adding further strain to household budgets.

Despite the scale of financial difficulty, a quarter of people said they would not feel comfortable requesting financial support even if their situation required it.

Meanwhile, energy giant BP has said that it is now set for “exceptional” financial results in the first three months of the year after the Iran war sent the cost of oil soaring.

A spokesperson for the End Fuel Poverty Coalition, commented:
“These figures reflect what households across the country are living through. Cutting back on food and heating is not an abstract financial decision, it is a sign that the energy system based on volatile oil and gas prices is failing people.

“With forecasts pointing to a fresh energy bill rise from July, the pressure on household budgets is only going to intensify. The Government must use the next price cap period as a moment to act. Targeted bill support, action on energy debt and reform of how energy costs are structured would make a real and immediate difference to millions of households.

“And with the public backing the continuation of the Windfall Tax on energy firm profits by a margin of two-to-one, there is also a clear way to pay for this support.”

Iran conflict to cost the typical households £480 each

Rising energy costs triggered by the conflict in Iran are set to leave typical British households nearly £500 worse off this year, according to new analysis from the Resolution Foundation.

The thinktank calculates that the median working-age household, previously on track for modest income growth of 0.9%, could now see income fall by 0.6%, a swing worth around £480. Lower-income households will still see some benefit from the abolition of the two-child limit and above-inflation increases in Universal Credit, but the foundation estimates average income growth for the poorest fifth has been cut from 2.8% to just 1.2% as a result of the conflict.

The Foundation is urging ministers to accelerate work on a social tariff, a targeted support mechanism for lower-income energy users estimated and has the backing of former Conservative chancellor Jeremy Hunt, who estimated it would cost between £5bn and £10bn, but would sit within the Government’s fiscal rules. A Hunt-linked consultancy has previously estimated the Windfall Tax on energy firms could be generating excess revenue for the Treasury.

Meanwhile, Energy UK chief executive Dhara Vyas confirmed to media that a bill rise from 1 July is now inevitable, describing the market as “wildly unpredictable” given daily swings in global gas prices. She backed targeted support and called for accelerated investment in clean power as the only sustainable long-term answer to energy price volatility.

A spokesperson for the End Fuel Poverty Coalition commented:

“There is broad agreement that targeted support for struggling households is needed while clean power and improved energy efficiency is the long-term solution.

“New polling makes clear that the public understands the urgency of the here and now. Over four in ten people say they simply cannot afford the expected rise in bills this July, with many more worried about the impact of oil and gas prices on energy bills.

“Ministers should set out what support will be available and use the receipts from the Energy Profits Levy to pay for it. This Windfall Tax retains the support of voters and given that two thirds of the public believe energy firms are already profiteering from the Iran conflict, it is no wonder that voters back the Levy by a two-to-one majority.

“The Government should be listening to that public consensus, not to the powerful oil and gas lobbyists calling for the Windfall Tax to be ended just as energy profits are set to spike again.”