Scotland Archives - End Fuel Poverty Coalition

Scottish public back the energy Windfall Tax in new poll

Twice as many people in Scotland (41%) support the Windfall Tax than oppose it (19%), with support cutting across all political parties and across all parts of the country, according to new polling. [1]

The Windfall Tax (Energy Profits Levy) was levied on oil and gas companies operating in the UK in May 2022 in response to record oil and gas industry profits and the rapid increase in energy costs following the Russian invasion of Ukraine.

In recent days, wholesale energy costs have surged 30% year on year as a result of conflict in the Middle East and sit at levels last seen in winter 2022/23. [2]

Energy firms have seen their share prices rise over 7% in the last month (compared to the FTSE 100 rise of 0.43%). This includes North Sea operators who have lobbied heavily to scrap the windfall tax. [3]

A spokesperson for the End Fuel Poverty Coalition said:

“Despite the intense lobbying by the oil and gas industry – and their political allies – the Windfall Tax retains the support of the public.

“It’s no surprise that twice as many Scots are in favour of the tax than oppose it and nearly a fifth say that they strongly support the measure.

“As long as people see the disparity between their own living conditions and the huge profits made by energy firms, this support will continue.”

The survey, carried out by Survation, spoke to over two thousand adults in Scotland in a poll that reflects the political make-up of the nation’s voters.

It revealed that Scottish voters from all parties supported the windfall tax.

Support for the windfall tax is highest among people intending to use their Holyrood list vote for the SNP (48%), Labour (53%), Liberal Democrat (61%) and Green (47%). Conservative and Reform UK voters were more likely to support the tax than oppose it (Conservatives 37% support, 34% oppose; Reform UK 32% support, 30% oppose). Similar results were found among constituency voting intention.

Frazer Scott, Chief Executive of Energy Action Scotland, commented:

“Energy companies continue to make excessive profits at the expense of people. People who cannot heat their homes to a safe level and are burdened by £5.5bn of unrepayable domestic energy debt. Until there is reform that puts people at the heart of the energy system it is right for big business to put its fair share back to help those that need it most.”

Jamie Livingstone, Head of Oxfam Scotland, said:

“People aren’t daft; they know that the companies that have polluted our politics and plundered our planet shouldn’t be let off the hook for the spiralling climate destruction they continue to cause.

“Energy giants have racked up years of eye-watering profits. Politicians must ensure they pick up more, not less of the tab for the shift to a clean energy future instead of leaving hard pressed Scots and communities globally facing famine and floods to foot the bill. Fossil fuel companies helped light the fire, continue to fuel it, so it’s only fair they help pay to put it out.”

Friends of the Earth Scotland oil and gas campaigns manager Rosie Hampton commented:

“With the conflict in the Middle East, energy companies could again be making the windfall profits that have caused the cost-of-living pain and suffering in the last five years. People will be rightly worried about household energy bills soaring again as greedy oil giants capitalise on the violence.

“We must not forget that this tax will go to supporting the NHS, educating children and protecting our environment so any politician calling for the tax to end are demanding less support for vital public services.”

Previous End Fuel Poverty Coalition research found that just a handful of energy firms have made around £40 billion in UK profits in the last two years, even with the Energy Profits Levy in place.

The Government has committed to phasing out the tax by 2030 to be replaced by a new tax regime for the sector.

ENDS

[1] Survation asked over 2,000 Scots:

An Energy Profits Levy (EPL) or ‘Windfall Tax’ was levied on oil and gas companies operating in the UK in May 2022 in response to record oil and gas industry profits and the rapid increase in energy costs following the Russian invasion of Ukraine. It is due to be in place until 2030. Do you support or oppose, or neither support nor oppose, the current windfall tax on oil and gas company profits?

Fieldwork Dates Fieldwork: 10th February – 17th February 2026
Full details are available from the Survation website.
FULL RESULTS
- Strongly support the Windfall Tax 19%
- Tend to support 22%
- Neither support nor oppose 27%
- Tend to oppose 11%
- Strongly oppose 8%
- Don’t know 13%
- NET: Support (Strongly+Tend to) 41%
- NET: Oppose (Strongly+Tend to) 19%
- Weighted total: 2005 respondents
Method – The survey was conducted via Online Panel. Different response rates from different demographic groups were taken into account.
Population Sampled: Adults aged 16+ in Scotland. Sample Size 2,005.
Data Weighting: Data are weighted to the profile of Scotland. Data was weighted by respondent’s sex, age, region, and past vote (2014 referendum, 2016 referendum, 2021 Scottish parliamentary election, 2024 general election). Targets for the weighted data are derived from the ONS.
Margin of Error Because only a sample of the full population was interviewed, all results are subject to margin of error, meaning that not all differences are statistically significant. For example, in a question where 50% of respondents (the worst case scenario as far as margin of error is concerned) gave a particular answer, with a sample of 2005 it is 95% certain that the ‘true’ value will fall within the range of 2.33% from the sample result. Subsamples from cross-breaks will be subject to higher margin of error. Conclusions drawn from crossbreaks with very small sub-samples should be treated with caution.
Polling available to download as an .xls here.

[2] Trading Economics Data as at 6 March 0900. https://tradingeconomics.com/commodity/uk-natural-gas

[3] Profits data from https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/.

Share price data from Bloomberg 6 March 0900, data as at close of business on 4 March. 10 energy firms listed on London Stock Exchange are monitored through a watchlist and prices compared to 8 February. These firms represent a mix of producers, suppliers, traders and supply chain in both fossil fuel and renewable sectors. Within this, specific surge examples include Ithaca Energy (+15%), Harbour Energy (+13%) and BP (+4%) all rising strongly in the immediate aftermath of the American / Israeli attacks on Iran. Harbour rose from 242.4 on 25 Feb to 274.8 on 3 March. Ithaca 213.5 to 245.5. BP 470.25 to 488.20.

Scottish Ministers step up attacks on energy Windfall Tax

The debate over the UK’s windfall tax on oil and gas companies has reignited after Scotland’s First Minister called for the levy to be scrapped. He joins his Scottish Government colleagues in putting pressure on UK ministers after lobbying from the energy industry.

Citing uncertainty caused by conflict in the Middle East, John Swinney said the Energy Profits Levy is harming investment and jobs. But with global gas prices rising again (57% increase month on month as per market data at 1400 on 4 March) and energy companies continuing to post strong profits, campaigners argue weakening the tax would not help households already struggling with high bills.

A spokesperson for the End Fuel Poverty Coalition, commented:
“Conflict in the Middle East and rising global gas prices show exactly why the Windfall Tax remains necessary, not why it should be scrapped. When geopolitical tensions push up prices, energy companies and their shareholders benefit while households face another round of higher bills from 1 July.

“Energy firms have made tens of billions in UK profits in recent years even with the Energy Profits Levy in place, so the idea that removing it will suddenly make energy cheaper or more secure simply doesn’t stand up. The North Sea is declining because of the geology of an ageing basin, not because companies are paying a fair share of tax.

“Instead of handing the industry a tax break, governments should be using these revenues to cut bills, tackle energy debt, support workers through the transition and invest in warm homes and clean energy so households are protected from exactly this kind of global price shock.”

Life in cold, damp homes doesn’t pause for the Scottish campaign trail

The Scottish Budget includes welcome funding for energy efficiency, housing and the transition to clean energy. It also includes significant support with the cost of living, including extension of help for families with young children and tax reforms designed to reduce the income tax paid by over half of the country.

But with an estimated 800,000 Scottish households living in fuel poverty and energy debt continuing to rise, a spokesperson for the End Fuel Poverty Coalition commented:

“Any investment that helps make homes warmer and provides support to struggling households will matter to many people. But after five winters of high energy bills, this Budget still does not match the scale of the fuel poverty challenge facing Scotland.

“With an election approaching, it’s understandable that politicians may be tempted to keep their powder dry. But cold, damp homes and rising energy debt won’t pause for the campaign trail. There is no excuse for inaction when hundreds of thousands of households are struggling to stay warm.

“Against that backdrop, inflation-linked increases to energy efficiency budgets means the country will risk standing still rather than moving forward. We need a step change, not business as usual.

“The current Government should use the months before the election to build a far more ambitious programme where warm homes are treated as national infrastructure and where crisis funding is in place for winter 2026/7.

“Meanwhile, Ministers must press harder for UK-wide energy pricing reform, so households are not left dependent on emergency support year after year.”

MSPs must act to help end cold homes crisis

Members of the Scottish Parliament have been urged to put political differences aside to unite in support measures that will help end fuel poverty.

In a letter sent to all MSPs, politicians have been asked to ensure the next First Minister does not abandon government policies which could help end the cold damp homes crisis.

For over 400,000 Scots, their homes are almost uninhabitable due to the cold and damp.

The letter, signed by leading civil society organisations and coordinated by the End Fuel Poverty Coalition and Energy Action Scotland, warns that among the most vulnerable, the crisis is even worse.

New figures from research among Social Workers Union members has found that 69% of Scottish social workers have seen the people they support living in cold damp homes.

The letter states that the health complications of this are potentially serious: “Everyone remembers the tragic case of Awaab Ishak, but people young and old, with disabilities or with a range of health conditions are at risk.”

The campaigners have demanded that MSPs from across all parties to unite in support of:

A Heat in Buildings Bill which is ambitious in its vision for improving the energy efficiency and insulation of the nation’s homes and contains a clear fuel poverty duty enshrined in the legislation.
The current Housing Bill that will enhance tenants’ rights and provide financial protections for tenants during the ongoing cost of living crisis.
Additional Government support in future budgets and legislation to help households cope with the cost of living crisis.
Reintroducing the Fuel Insecurity Fund to help at least those most at risk of harm and struggling in energy debt.
The new Pension Age Winter Heating Payment being fundamentally better targeted than the Winter Fuel Payment that it replaces.
A strengthened framework of support for the renewables and offshore wind sectors and the fastest possible “just transition” for the oil and gas sector, as described in the Draft Energy Strategy and Just Transition Plan.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Any further delays to boosting energy efficiency plans, protecting tenants rights and organising financial support for the most vulnerable will hit households hard.

“We need MSPs to come together and unite on a programme that will tackle the long term causes of Scotland’s cold homes crisis and provide emergency support to those most at risk next winter.”

Other groups signing the letter range from the Poverty Alliance and the Disability Poverty Campaign Group to Fathers Network Scotland, the National Pensioners Convention and Parents for Future Scotland.

Local groups such as Aberdeen Heat & Power, East Kilbride Housing Association, Musselburgh Food Pantry, Stirling District Citizens Advice and Tighean Innse Gall have also backed the letter.

One signatory, Gaynor Allen from Sustaining Musselburgh, which is organising an event to help East Lothian residents find out how to make their homes warmer and less expensive to heat on 1st June, said:

“Everyday we hear more shocking stories of the hardships people are facing due to high energy bills and poorly insulated homes. We need both the UK and Scottish Governments to prioritise the short term and long term solutions to fix people’s cold homes.”

Warm This Winter spokesperson Fiona Waters, added:

“What voters really care about is the cost of living crisis driven by high energy bills that is still putting unbearable pressure on millions of households around the country.

“We need governments in each nation who will prioritise fixing our broken energy system by getting us off expensive oil and gas and onto cheap, homegrown renewables and by properly insulating our leaky housing stock to bring down bills for good.

“Politicians should not lose sight of that or they will pay at the ballot box.”

To read the full letter, click here.

Energy bills set to hit highest peak since price cap introduced

Millions of people across Britain are set to be hit with the highest fuel bills since a price cap was introduced, according to a new analysis of data.

With wholesale prices increasing [1], Ofgem is set to announce an increase in fuel bills as early as 6 August. Around 15m people on default tariffs and pre-payment meters will be affected.

The move, estimated by Cornwall Insight analysts to see bills increase by £112 a year, will hit homes from 1 October [2]. Just as furlough comes to an end and the nation heads into winter. Such a rise would mean bills for homes on a standard variable tariff will be £226 higher than in February 2017. [3]

Calculations by the Coalition, provided to The Guardian, estimate that the price rise will force an additional 392,000 households into fuel poverty. [4]

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said:

Over 4m people are behind on their household bills and a second Ofgem price cap rise this year will be disastrous for the millions on the brink of fuel poverty.

Any price cap rise will only make matters worse for families struggling to make ends meet. At the same time, people are still reeling from the increases in bills caused by stay at home lockdown measures for the last 18 months.

While people’s attention is diverted by the rush out of lockdown, the reality is that the countdown to winter is on and it is a race against time. Any price rise – however small – will mean the choice between heating or eating becomes even starker later this year.

If that wasn’t bad enough, fuel poverty can make respiratory illnesses worse – meaning conditions such as Covid may be exacerbated by living in cold damp homes.

Short-term energy saving measures and shopping around for cheaper energy can help reduce bills, but the scale of the problem faced by people this year is huge and any increases during the pandemic and the recovery should be avoided.

We’d urge Ofgem and policy makers to think again about the price cap rise, or the Government to step in and provide emergency financial support to those who suffer due to the decision.”

Ruth London from Fuel Poverty Action, commented:

With thousands dying of cold every year the current energy pricing system – complete with price caps – is not fit for purpose. As prices rise, a carbon tax rebate would help, but won’t solve this.

We need a new pricing framework, where poorer people don’t pay higher rates than the rich.

We need well-insulated housing, renewable energy, and wages and benefits that meet our costs. No special provisions or consumer protection will stop fuel poverty from killing pensioners and wrecking childhoods. The pandemic has taught millions that real change can’t wait.

Matt Copeland, Head of Policy and Public Affairs at National Energy Action said:

The price cap is an important measure to ensure that households are not exposed to excess profits in the energy market. However, if prices rise as is expected, Ofgem and Government must work together to help those worst affected by rising utility debt in order to avoid a devastating winter for people in and on the brink of fuel poverty. This must be combined with a long-term boost to spending to improve energy efficiency of buildings.

Without intervention, more people will remain cold at home during the winter, be more susceptible to respiratory illness, and unfortunately many will die. That is a truly unacceptable outcome, especially as the solutions to avoid it are well known.

Frazer Scott, CEO of Energy Action Scotland, commented:

More than a quarter of Scottish households are living in fuel poverty with many of these households living off the gas grid, dependent on electricity. The anticipated price rises will have a catastrophic effect on struggling households particularly as the job retention scheme ends and the Scottish winter approaches.

Scotland needs a fuel poverty strategy as a matter of urgency to ensure that we are prioritising the homes and families most in need. We must move quickly in order to protect our health service from the additional burden created by cold, damp homes and we must see adequate investment from Scottish Government that will eradicate the national shame that is fuel poverty.

Ben Saltmarsh, Chair of Fuel Poverty Coalition Cymru and Head of NEA Cymru, added:

Hundreds of thousands of households in Wales already struggle to keep warm at home. Far too many must ration essentials, cutting back on heating and electric. If these price rises come to bear, people will find it even harder still.

It is vital that the Welsh Government follows through with the promises that it made in its Fuel Poverty Plan to support the worst-affected first; upgrading the energy efficiency of fuel poor homes, maximising incomes, and working with partners, including the UK Government and Ofgem, to protect Welsh households.

[1] Wholesale prices on Zenergi show a rise of between 19% and 42% (from 2/6/21 to 30/6/21).

[2] Cornwall Insight data from energy analysts forecasts that the price cap on standard and default tariffs will rise in October to around £1,250/yr for a typical dual-fuel household paying by direct debit, up from the current price of £1,138/yr.

[3] End Fuel Poverty Coalition analysis of official Ofgem announcements.

[4] The calculation is based on EFRA Select Committee on Energy Efficiency and Fuel Poverty HC37 2009 and Fuel Poverty Methodology handbook BEIS / BRE, updated September 2016 which estimates that for every 1% rise in energy prices an additional 40,000 homes go into fuel poverty. The rise from 1138 to 1250 is a 9.8% rise so that equates to 392,000 (40,000 * 9.8).