New polling shows strong public backing for the Windfall Tax on oil and gas profits just as global conflict is once again pushing energy prices higher and raising fears of another spike in household bills.
Research commissioned by Campaign Collective from Survation found that twice as many people in Scotland support the Windfall Tax (41%) as oppose it (19%), with support cutting across all political parties and regions of the country. The levy, formally known as the Energy Profits Levy, was introduced in May 2022 in response to record oil and gas profits following Russia’s invasion of Ukraine and the resulting surge in energy costs.
The findings come as wholesale energy markets have been thrown into turmoil following escalating conflict in the Middle East. Wholesale gas prices have surged around 30% year-on-year, returning to levels last seen during the energy crisis of winter 2022/23.
Energy firms have also seen their share prices rise sharply in recent weeks, with stocks across the sector up over 7% in the past month, significantly outperforming the wider FTSE 100.
Campaigners warn the developments highlight how exposed the UK remains to global fossil fuel volatility.
Simon Francis, who coordinates the End Fuel Poverty Coalition, said:
“Energy markets may be in turmoil, but for households the real worry is what that turmoil means for their bills in the months ahead.
“For now most households are shielded by the energy price cap, which means the immediate impact will be limited. But if higher wholesale prices persist, they will feed into Ofgem’s next price cap decision later this year and could wipe out the modest relief families were hoping for.
“The deeper problem is that the UK remains dangerously exposed to global fossil fuel markets. As long as our energy system is tied to gas prices set internationally, conflicts and supply shocks thousands of miles away will continue to hit household finances here.
“And while families face that uncertainty, the energy industry has already generated more than £125bn in UK profits since 2020. Ministers must ensure the system works for consumers, not just energy giants, by accelerating homegrown renewables, rolling out a nationwide insulation programme and reforming how energy is priced.”
Earlier research by the End Fuel Poverty Coalition found that just a handful of energy firms generated around £40 billion in UK profits in the last two years alone, even with the Windfall Tax in place.
Despite intense lobbying from the oil and gas industry to scrap the levy, the new polling suggests public support remains strong.
Frazer Scott, Chief Executive of Energy Action Scotland, said:
“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.”
Campaign Collective, coordinate the End Fuel Poverty Coalition to shine a light on the real impact of the energy crisis.