Energy prices soared in 2022 causing the vast majority to struggle paying their bills; Shell has announced record breaking profits of £32billion last year.
The Office for National Statistics said that around 6% of adults were behind on their gas and electricity bills.
According to Don’t Pay UK, an organisation calling for a strike on payments to energy providers, say that at least 3 million people are in debt to their energy supplier. Don’t Pay UK are demanding that the energy price cap is returned to its pre-April 2021 level.
A windfall tax has been placed on energy company profits. This is 35% of the profit generated in the UK. The government has generated just £1.8billion from Shell, or 5.7% of their overall profits.
Shell, whose headquarters are in the UK, avoided paying windfall tax up to October 2022 because of investment into North Sea Oil drilling – erasing profits, the company said.
Shadow Chancellor Rachel Reeves said:
“This week Shell posted record profits – while families worry about another price spike.
As people across Leeds and the country face an energy price hike of 40% in April, the Prime Minister is letting the fossil fuel companies making bumper profits off the hook with his refusal to do a proper windfall tax.
The government must bring in a proper windfall tax on energy giants – to stop the energy price cap going up in April.”
A government spokesperson deflected question about changes to the windfall tax to the Chancellor.
Unite general secretary Sharon Graham said “People will be totally aghast at the scale of Shell’s astronomical profits” and asked “is the government going to get real about talking on profiteering or, as usual, continue its false propaganda that it’s workers’ wage rises that are causing inflation.
More energy companies are set to announce their profits in due course and millions of people across the nation will be waiting to see what April has in store for them as the Ofgem Price Cap will be reviewed.