Liberal Democrat Leader and former Energy Secretary has called for a “Robin Hood” tax on the super-profits
of oil and gas firms to raise money to support millions of
families facing soaring energy costs.
The proposed one-off levy would raise an estimated £5 billion
from companies that are making record profits from soaring energy
prices. This would be used to support vulnerable families facing
a crippling 50% increase to their energy bills.
Earlier this week it emerged that Russian energy giant Gazprom’s
trading arm, based in London, has cashed in a £179 million
dividend. Meanwhile, the boss of BP has described his company as
a 'cash machine' after soaring
oil and gas prices boosted its profits to £2.4 billion in the
third quarter of 2021 alone.
, who as Energy Secretary developed a strategy to tackle
fuel poverty, says the money raised through this “one-off” tax
could fund a substantial package of emergency support to help
over 17 million people with their heating bills.
The current Warm Homes Discount would be more than doubled to
£300 and offered to all 7.5 million vulnerable and low-income
households on Pension Credit and Universal Credit. The Winter
Fuel Allowance offered to pensioners would also be doubled to
£600 for one year. This would support 11.3 million elderly people
who are seeing their state pensions slashed in real terms by the
government’s broken election promise on the triple lock.
Liberal Democrat Leader said:
“It can’t be right that a few energy fat cats are raking it in
from record gas prices while millions of people can't even afford
to heat their homes.
“A Robin Hood tax on gas and oil barons would provide vital cash
to support vulnerable families facing crippling energy price
hikes.
“For years the Conservatives have ignored this problem and failed
to take the bold action we need to reduce fuel poverty. cannot look the other way any
longer while families face an impossible choice between heating
and eating.
“We need a substantial package of support now that provides
immediate support to those struggling to get by, while helping
people insulate their homes to slash heating bills in the long
term.”
ENDS
Notes to Editor
The proposed windfall tax would be a one-off levy on firms who
have made huge profits from record high gas prices. This would
include oil and gas producers along with energy traders such as
Gazprom’s trading arm that profit from betting on fluctuations in
energy prices. The levy would raise an estimated £5 billion to £7
billion. This would be spent on:
-
Doubling and extending the Warm Homes Discount (£2bn): Taking
£300 a year off the heating bills of around 7.5 million
vulnerable and low income households, by more than doubling
the Warm Homes Discount and extending it to all those on
Universal Credit and Pension Credit. This would also reduce
energy bills for all households across the country, as
currently the Warm Homes Discount is paid for by other
customers rather than through taxing the super-profits of oil
and gas companies.
-
Doubling the Winter Fuel Allowance (£1.9bn): Giving up to
£600 a year to 11.3 million elderly pensioners to help with
their heating bills, through a one-off doubling of the Winter
Fuel Allowance. Pensioners are currently facing a £208
real-terms cut to the state pension next year due to the
Conservative government’s decision to scrap the triple lock.
This would cost an estimated £1.9 billion.
-
A new ten-year home insulation scheme (£500m): This would be
spent on reducing people’s energy bills in the long-term
through an emergency home insulation programme to upgrade
poorly insulated UK homes - including through fully funded
grants for those in fuel poverty and on low incomes. This
would cost an estimated £500 million in the next year.
-
Supporting energy intensive businesses (£500m): This funding
would be used to support businesses and protect jobs in
energy-intensive industries, while helping firms reduce their
need for energy in the long-term.
As Secretary of State for Energy and Climate Change oversaw a reduction in fuel poverty with over 1.8
million heating and energy efficiency measures for low income
areas and households, and minimum energy efficiency standards
introduced for the private rented sector. He launched a fuel
poverty strategy for England in 2015
including new fuel poverty reduction targets, and oversaw the
near quadrupling of the UK's renewable energy capacity, reducing
the country’s reliance on overseas gas.
Since 2015 the Conservatives have scrapped zero carbon standards
for new homes, effectively banned onshore wind while slashing
subsidies for solar, and failed to insulate the millions of
energy efficient homes.
