Tag: Windfall Tax

Fresh profits highlight contrast between industry returns and bills

Scottish Power owners, Iberdrola have reported a rise in profits in the first quarter of 2026, claiming growth is driven substantially by its regulated network operations in the United Kingdom.

The total profits made by the firm in the UK amount to just under £1 billion in the first three months of the year alone, up from £0.8 billion in the first quarter of 2025 – a 19% increase year on year [pdf, p59 & 66].

TotalEnergies, which via its NEO NEXT+ arm calls itself the largest producer on the UK Continental Shelf, has also posted improved results. Adjusted net income (a profit measure) for the firm’s first quarter came in at $5.4 billion (£4bn), up from $4.2bn (£3.1bn) in Q1 last year and it has now launched a share buyback plan and increased dividends for shareholders.

Questions are also being asked about TotalEnergies’ broader role in UK energy supply, including a government gas contract worth up to £8 billion to supply public sector buildings, from Downing Street to schools and hospitals.

The announcements come after BP’s 2026 Q1 results prompted anger among the public. A spokesperson for the End Fuel Poverty commented:

“Another good day for the energy industry means another kick in the teeth for consumers.

“Energy network infrastructure is generating strong and growing returns for shareholders, yet these returns ultimately mean higher bills for households.

“Meanwhile, the consolidation of North Sea assets into ever-larger corporate entities reveals where this industry is heading, companies positioning themselves to extract maximum profit from a dying basin while bills remain high.

“As well as taxing profits to ensure Ministers can provide help to those in fuel poverty, the Government must focus on reforms that will actually bring energy bills down. That means breaking the link between electricity prices and volatile gas markets and accelerating insulation and clean heat programmes.”

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.

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.

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.”

Eight in ten people fear rising bills as voters back energy Windfall Tax

The majority of the public are worried about rising energy costs as a result of the conflict with in Iran, according to new polling by Survation for the End Fuel Poverty Coalition.

83% of the public are worried about energy bills and 44% say they would be unable to afford the expected £228 annual increase in energy bills from 1 July. 

A quarter of these respondents claim they would be “completely unable to pay my energy bill” if costs rose to this level.

As energy bills are set to rise, a majority of the public (64%) believe that the energy industry is profiteering from the conflict in Iran.

Over half (53%) of the population say that ending the Windfall Tax now would be the wrong thing to do (just 22% felt that it should be ended) as some industry groups have called for.

More generally, 41% of the public support the Windfall Tax on energy firms, compared to just 17% opposing it. Meanwhile, almost half (47%) believe that windfall taxes should actually be extended to more companies within the energy industry.

A windfall tax is an additional tax applied when companies make unusually high profits, often due to external factors rather than increased productivity or investment.

Support for the Windfall Tax remains among voters from all parties, according to the data. Among those intending to vote for Reform UK in the next general election, 39% support the Tax with just 24% opposing it. For those thinking of voting Conservative, 44% still support the Levy and 19% oppose it.

Among Labour, Green and Liberal Democrat voters, support is even stronger – as is support for extending the taxes to other sections of the industry.

Backing for the Windfall Tax was also strong in all areas of the country, with people in Wales polling the strongest support for the Levy. Earlier detailed polling in Scotland had shown 41% backing the Tax with 19% opposing it, but the new data suggests that this support has deepened with 44% now in favour of the Levy.

Recent figures have shown that the energy industry made £125bn in profits on their UK operations in the last 5 years and in the month since the conflict in the Middle East began, the share prices of energy companies have soared adding over £233bn to the market capitalisation of firms and resulting in a boost in the wealth of energy firm bosses.

Simon Francis, End Fuel Poverty Coalition coordinator said:

“Trump’s attacks on Iran, the damage to Qatari gas production and the disruption to supplies has led to spikes in the costs of heating oil and gas.

“But while households will feel the effects of this for months to come, the energy industry will continue to benefit from increased prices and a fresh wave of excess profits.

“Not only is the Windfall Tax vital in raising revenue to help those most affected from high energy bills, but this must also be the moment that the country unites to push for more support for energy efficiency measures and boosts renewable energy plans to bring down bills and secure our energy supply for the long-term.”

Robert Palmer, deputy director of Uplift said:

“Politicians calling for an end to the windfall tax just as the oil and gas giants are about to make billions in bumper profits are tone deaf.

“Instead of siding with the profiteering oil industry, political parties should be standing up for billplayers who are facing a steep Trump Tax on everything from their energy bills, to petrol and food.

“Last time, when Russia invaded Ukraine, oil companies didn’t invest their windfall profits in more drilling, instead executives and shareholders got windfall payouts. The government needs to tune out the barrage of special pleading by the oil firms and their political cheerleaders, and focus on real solutions to this crisis.

“The only way to bring down energy costs over the long term is to get off our reliance on oil and gas, and invest as fast as we can in renewables. More North Sea drilling will not take a penny off our bills, only boost the profits of fossil fuel companies.”

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).

Questions cited in the news story (some totals will not sum to 100% due to rounding, sample sizes in Northern Ireland are below 50 and should not be taken as representative)

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?

  • Strongly support: 20%
  • Tend to support: 21%
  • Neither support nor oppose: 26%
  • Tend to oppose: 9%
  • Strongly oppose: 8%
  • Don’t know: 16%
Total Voting Intention
LAB CON RFM LD GRN OTH
Strongly support 19.77% 27.43% 19.27% 15.02% 28.16% 20.25% 19.21%
Tend to support 21.34% 25.40% 24.44% 23.82% 33.60% 23.49% 12.85%
Neither support nor oppose 26.42% 25.42% 29.44% 26.48% 19.82% 22.46% 26.61%
Tend to oppose 8.94% 9.66% 10.07% 12.22% 7.24% 8.09% 7.49%
Strongly oppose 8.05% 5.60% 8.68% 11.62% 1.78% 7.51% 8.11%
Don’t know 15.48% 6.49% 8.10% 10.84% 9.41% 18.20% 25.72%
NET: Support 41.11% 52.83% 43.71% 38.83% 61.76% 43.74% 32.07%
NET: Oppose 16.99% 15.27% 18.75% 23.84% 9.02% 15.60% 15.60%
Total Region
London South Midlands North England Scotland Wales Northern Ireland
Strongly support 19.77% 18.64% 20.93% 15.61% 17.62% 18.65% 24.55% 22.06% 35.86%
Tend to support 21.34% 27.41% 19.77% 21.47% 19.47% 21.19% 19.49% 25.48% 24.59%
Neither support nor oppose 26.42% 25.28% 29.91% 26.95% 27.42% 27.94% 20.17% 20.47% 8.62%
Tend to oppose 8.94% 11.65% 7.72% 9.64% 7.82% 8.72% 10.89% 4.71% 17.09%
Strongly oppose 8.05% 8.30% 7.46% 7.62% 8.41% 7.88% 8.90% 8.21% 10.33%
Don’t know 15.48% 8.71% 14.21% 18.72% 19.25% 15.61% 16% 19.07% 3.51%
NET: Support 41.11% 46.05% 40.70% 37.07% 37.09% 39.84% 44.04% 47.54% 60.45%
NET: Oppose 16.99% 19.95% 15.18% 17.26% 16.23% 16.60% 19.79% 12.92% 27.42%

“It would be wrong to scrap the Windfall Tax now.”

  • Strongly agree: 24%
  • Somewhat agree: 28%
  • Somewhat disagree: 14%
  • Strong disagree: 8%
  • Don’t know: 26%
Total Voting Intention
LAB CON RFM LD GRN OTH
Strongly agree 24.22% 31% 20.69% 24.95% 29.22% 31.93% 20.74%
Somewhat agree 28.44% 32.61% 38.78% 28.27% 33.37% 22.77% 24.39%
Somewhat disagree 13.98% 14.10% 13.22% 19.03% 10.82% 11.77% 11.66%
Strongly disagree 7.79% 7.40% 5.35% 8.05% 8.53% 8.73% 6.96%
Don’t know 25.57% 14.90% 21.97% 19.70% 18.07% 24.80% 36.25%
NET: Agree 52.66% 63.61% 59.47% 53.22% 62.58% 54.70% 45.13%
NET: Disagree 21.77% 21.50% 18.56% 27.08% 19.34% 20.50% 18.63%
Total Region
London South Midlands North England Scotland Wales Northern Ireland
Strongly agree 24.22% 25.73% 27.10% 21.52% 18.35% 23.42% 29.51% 26.40% 29.01%
Somewhat agree 28.44% 33.39% 25.43% 28.81% 29.63% 28.46% 23.80% 32.63% 34.61%
Somewhat disagree 13.98% 15.86% 11.76% 16.61% 13.68% 13.85% 14.51% 9.51% 24.13%
Strongly disagree 7.79% 8% 7.95% 8.78% 7.67% 8.04% 6.22% 6.66% 6.85%
Don’t know 25.57% 17.01% 27.75% 24.28% 30.67% 26.23% 25.96% 24.80% 5.39%
NET: Agree 52.66% 59.13% 52.54% 50.33% 47.99% 51.88% 53.31% 59.03% 63.62%
NET: Disagree 21.77% 23.86% 19.72% 25.39% 21.34% 21.89% 20.74% 16.17% 30.98%

Which of the following statements best describes your view?

  • Energy companies are profiteering from the conflict in Iran: 64%
  • Energy companies are not profiteering from the conflict in Iran: 15%
  • I don’t know: 21%

Which of the following comes closest to your view?

  • Windfall Taxes should be extended to more companies within the energy sector: 47%
  • Windfall Taxes should not be extended to more companies within the energy sector: 21%
  • Don’t know: 32%

How concerned are you about the potential rising costs for the following due to the conflict in Iran, if at all? – Energy bills

  • Very concerned: 55%
  • Somewhat concerned: 28%
  • Not very concerned: 8%
  • Not at all concerned: 4%
  • Don’t know: 5%
  • NET, concerned: 83%
  • NET, not concerned: 12%

Some predict average energy bills to increase by £228 per year in July. If your energy bill were to increase by this amount, which of the following statements best reflects your view?

  • I would be unable to afford this energy bill price increase: 44%
  • I would be able to afford this energy bill price increase: 38%
  • Don’t know: 15%
  • Prefer not to say: 3%

In the previous question you said that you would be unable to afford this energy bill price increase.In a scenario where your energy bill increased by £228, which of the following statements best reflects your view?

  • I would have to cut back on essential goods to afford to pay for my energy bill: 49%
  • I would be completely unable to pay my energy bill: 25%
  • I would have to cut back on luxury goods to afford to pay for my energy bill: 15%
  • I would be unable to afford this energy price increase, but I will not cut back on any spending to be able to pay for my energy bill: 9%
  • Don’t know 2%
  • Prefer not to say: 1%

Civil society calls for windfall taxes on crisis profits

More than 40 civil society organisations and trade unions have written jointly to the Prime Minister and Chancellor calling for excess profits taxes on sectors set to benefit financially from the economic fallout of the conflict involving Iran.

The signatories, who include National Education Union, Tax Justice UK, Greenpeace UK and the End Fuel Poverty Coalition, are urging the Government to act against profiteering as energy bills, fuel costs and household essentials face further upward pressure. They propose that revenues raised should be directed towards direct cost of living support and long-term investment in economic resilience.

The letter follows new data showing North Sea energy firms are already positioned to make additional profits from rising gas prices, with banks, mortgage providers, defence contractors and agribusiness also expected to see significant revenue increases.

Faiza Shaheen, Executive Director of Tax Justice UK who coordinated the letter said:

“Too often UK governments have failed to protect households and small businesses from the profiteering corporates and super-rich individuals who circle around crises like vultures. The Chancellor needs to show that this will not be yet another crisis where the rich get richer, while everyone else foots the bill.”

A spokesperson for the End Fuel Poverty Coalition said:

“Gas prices have more than doubled since late February, and households are already struggling with energy bills that have been stuck at elevated levels for five years. The latest global disruption is a stark reminder of the cost of our dependence on imported fossil fuels. Every time conflict or instability strikes overseas, ordinary households pay the price through their energy bills.

“The Government must act urgently to protect households from the impact of rising prices and ensure that the billions in excess profits energy companies are making during this crisis are redirected to support the people who need it most. Wiping out household energy debt, strengthening the Warm Home Discount and accelerating investment in home insulation would all help cushion the blow.”

The organisations are specifically calling for a strengthening of the existing Energy Profits Levy on North Sea oil and gas companies, a new levy on UK bank profits, and additional excess profits taxes on defence, agribusiness and associated technology firms.

The letter cites previous crises, including the Covid-19 pandemic and the invasion of Ukraine, as periods when the wealthiest households and corporations accumulated greater fortunes and profits while millions struggled with the rising cost of living.

Since 2020, energy firms have already made more than £125bn in profits on their UK operations.

North Sea profits spike should be used to offset energy bill rises

North Sea energy firms are set to make bumper profits, which would lead to increased revenues for the Government under the Windfall Tax, according to new figures reported exclusively in the Mirror.

Fossil fuel costs surged again late last week as attacks on energy sites in Iran and Qatar were followed by threats from US President Donald Trump to “massively blow up” a key Iranian gas field.

The data shows that for every month that energy prices remain at levels seen on 18th March 2026, profits from these prices could result in over £200m in revenue through the Energy Profits Levy. If prices stayed at this level, this would result in annual income of over £2.4bn. [1]

If combined with additional offshore corporation tax revenue on energy firms’ profits, the totals increase even further to £427m a month or £5.1bn a year. [2]

While the Ofgem energy price cap is set to fall slightly from April 2026, rising wholesale gas prices mean bills will rise sharply again from 1 July. Some households are already feeling the impact of rising costs. Off-gas households relying on heating oil have reported refill prices doubling in recent weeks, LPG customers are facing rising prices and some heat network customers could soon face steep increases as energy supply contracts expire.

The End Fuel Poverty Coalition has recently asked the Government to prepare an emergency energy support framework to protect households from rising gas and oil prices which will filter onto energy bills [3].

A spokesperson for the End Fuel Poverty Coalition, said:

“Anyone still arguing against the Energy Profits Levy should hang their head in shame. Whenever oil and gas prices spike, energy industry profits rise while households are left to face higher bills, deeper debt and impossible choices.

“It is only fair that these windfall profits help households who will suffer as a result of the increases in energy bills.

“Our message to ministers is simple. Help the hardest-hit households first and be ready to move fast if this crisis gets worse. That means urgent support for off-gas homes and heat network customers, targeted bill cuts if prices rise again, action on energy debt and stronger winter protection.

“It would protect people now while longer-term reforms bring bills down for good.”

Since 2020, energy firms have already made more than £125bn in profits on their UK operations.

In Scotland, recent polling showed that voters across the political spectrum backed the Windfall Tax on energy profits in its current form.  Frazer Scott, Chief Executive of Energy Action Scotland, commented:

“The current crisis shows that 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.”

Uplift Deputy Director Robert Palmer, said:

“Billpayers didn’t ask for this war and are now facing a huge Trump Tax on petrol, mortgages and food, with sky high energy bills looming once the current price cap ends. Yet once again, as we saw in Ukraine, oil and gas companies are profiting from what is a humanitarian crisis.

“The extra billions they stand to make from the crisis should be taxed and used to support people through the economic pain that’s on its way. Ultimately the only way to bring down bills over the long term is to get off our reliance on oil and gas, and invest as fast as we can in renewables.”

Jonathan Bean, spokesperson for Fuel Poverty Action, said:
“Instead of the £300 bill saving the Government promised us, we now face a £300 bill jump from July. The Government failed to fix the market after the 2022 crisis, so we’ve been left vulnerable to price spikes. The Prime Minister needs to get a grip on the obscene profiteering from war, close windfall tax loopholes, and bring down our bills.”

ENDS

The End Fuel Poverty Coalition brings together more than 100 charities, health organisations, housing groups, trade unions and consumer bodies working to end fuel poverty across the UK.

[1] OBR March 2025 ready reckoners (fetched 17 March 2026), applied to OBR March 2026 EFO baseline prices. Prices assumed: $100 barrel for oil and 130p/therm gas. This calculation was made before the additional spike in prices caused by the attacks on Iranian and Qatari gas facilities on 19th March, so the figures could be higher if current prices are sustained. .

[2] Prior to the latest escalation in prices and before the OBR updated its ready reckoners on the 17th of March analysis for Granville Partners, a consultancy firm run by former Conservative Chancellor Jeremy Hunt’s ex-chief of staff estimated the total extra tax revenue at £2.7bn. This could now be at the lower end of expectations and may not be directly comparable with the analysis above.

[3] The Coalition’s proposals focus on targeted support for households most exposed to high energy costs, while retaining the ability to expand support more widely if the crisis deepens.

The immediate measures recommended include a new, longer-term, Alternative Fuel Support Scheme for households relying on heating oil, LPG and other off-gas-grid fuels, as well as support for heat network customers who face rising commercial energy prices.

The proposal also recommends preparing a targeted reduction in energy unit rates from July if the Ofgem price cap rises significantly, alongside faster rollout of a national energy debt relief scheme to address record levels of household debt.

For the winter, the Coalition is calling for reforms to existing schemes including further expansion of the Warm Home Discount and strengthening Cold Weather Payments so support reaches vulnerable households earlier.

Ministers are also urged to speed up reform to electricity pricing and prepare a scalable universal support package that could be activated quickly if energy prices spike further.

The Coalition says the proposals are designed to complement longer-term policies such as the Government’s Warm Homes Plan and Clean Power Plan, which aim to reduce energy bills permanently by improving energy efficiency and reducing reliance on fossil fuels.

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.”

Windfall Tax in the firing line as Blair Think Tank backs energy industry

The Tony Blair Institute has repeated its call for an expansion of gas production in the North Sea and an end to the energy firm Windfall Tax.

The think tank has links to the Saudi government, the United Arab Emirates, Elon Musk’s Starlink [pdf, p8] and Trump apply Larry Ellison.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The Tony Blair Institute’s so-called ‘reset’ looks less like a fresh start and more like a defence of fossil fuels and an energy industry that has made over £125bn in UK profits since 2020.

“For the Institute to call for the Windfall Tax to be scrapped, while energy giants post extraordinary profits and millions live in cold, damp homes, is staggering. That tax exists because companies benefited from a crisis that devastated household finances.

“Removing the Windfall Tax would reward profiteering and shift the burden back onto households that are still paying the price of Britain’s over-reliance on gas.

“It was exposure to volatile global fossil fuel marketsthat sent bills through the roof, not climate targets and doubling down on new North Sea exploration will not lower bills.

“Gas is sold at international prices and the North Sea is a declining geological resource that cannot meet the country’s heating needs in the long term. The answer to high bills lies in accelerating homegrown renewables, reforming electricity pricing and investing in energy efficiency, not returning to the solutions of the past.”

Jess Ralston from the Energy and Climate Information Unit said:

“With many households still facing debts from the gas crisis of the past few years, focussing on bringing down bills is particularly key for them. Electrification, through the adoption of net zero technologies like heat pumps and EVs, will gradually reduce our vulnerability to the volatility of international oil and gas prices.

While the thrust of this report is around cheaper power, it’s not clear how many of its recommendations will lower bills. More drilling in the North Sea won’t make any real difference to the gas bills British homes pay because it’s international markets driven by Putin and Trump that dictate the price. The regulator’s own analysis shows more drilling will make very little difference to how steeply North Sea output continues to decline.

“Renewable wind power lowered the wholesale power price by around a third in 2025, squeezing more expensive gas power off the system. Every wind turbine we build or solar panel we install means the UK is less dependent on gas imports and less vulnerable to volatility in the gas price. We don’t have to import wind or sunshine.”

Meanwhile a spokesperson from the Green Alliance think tank added:

“We don’t need to rethink a clean power plan that’s working – the UK generated record-breaking amounts of renewable energy last year, and wind power replacing gas cut the wholesale cost of electricity by a third. Tony Blair’s think tank rightly points out that we need to make sure businesses and families save as a result, but gives few suggestions for how to do this. Given the former politician’s extensive ties to petrostates and oil and gas firms, it’s a bad look to see his institute call for more drilling in the North Sea, which will do nothing for our energy security.”