Written by Amy Beecham
Members of the public are wondering how or if they will be able to afford to heat their homes this winter while their energy providers rake in billions in profit. The cost of living crisis has many of us scared, but now it’s time to be outraged.
Great swathes of the public are wondering how or if they’ll be able to afford to heat their homes this winter; meanwhile, their energy providers rake in billions in profit. The cost of living crisis has left us scared, but now it’s time to be outraged.
Despite growing fears over the need for ‘warm banks’ this winter for the public to cope with more steep price hikes, energy giants Shell and Centrica, the company that owns British Gas, today announced record profits of over £9.4 billion and £1.3 billion respectively.
Shell had already smashed its own quarterly record at the start of the year when it clocked up profits of £7.2bn, with British Gas enjoying a profit increase five times the amount of the same period last year. And while these huge companies have always thrived, the sting feels particularly painful given the economic pressures so many of us are facing in 2022.
Amid record inflation, the cost of living crisis only seems to be worsening. A third of women and girls in the UK have been pushed into period poverty, unable to afford menstrual hygiene products, and survivors of domestic violence are forced to choose between staying with an abusive partner or being made homeless.
Following the news, the anger across social media was immediately palpable.
“10 million families are spiralling into fuel poverty. Average bills could be £4,000 by January. Centrica has just announced its profits are up by 411%. Shell has doubled its profits. We can’t go on like this,” one user, Rachael Swindon, wrote.
“I just sat down for five minutes for a coffee.Meantime Centrica made £25k profit.More than a lot of people earn in a year. #EnergyCrisis,” added another.
“UK – energy grid warning – energy will be ‘tight’ this winter. So not only will you be paying £500+ but you may not even get what you need. Thrilled for Shell and Centrica though, who have announced record profits this morning. (Disclaimer, that bit was sarcasm),” tweeted commentator Bernie Spofforth.
And we have every right to be outraged. In October 2021, the average energy bill was £1,400. The last price cap increase, in April 2022, saw that rise to £2,000. By the end of the year, it’s predicted to reach close to £3,000.
Living standards think-tank The Resolution Foundation has also stressed that the poorest households are hit hardest, as the shortfall in people’s incomes to pay for vital essentials like food leaves them more vulnerable to inflation.
According to the Joseph Rowntree Foundation, between 2002-2003 and 2019-2020, the number of people in very deep poverty (below 40% of median income after housing costs) increased from 4.7 million to 6.5 million people. It’s predicted that a further 1.3 million people will fall into absolute poverty next year because of increased financial burdens.
The government has said that every household in the UK will get an energy bill discount of £400 this autumn as part of a package of new measures to tackle soaring prices. However, Money Saving Expert’s Martin Lewis and many other campaigners were clear that much more needs to be done now to help the poorest households.
Research from national poverty charity Turn2Us also revealed almost half its users (47%) report being left with nothing to live on each week after paying for housing, council tax and utility bills.
Today, Lewis stressed once again that soaring energy bills have hit a crisis point.
“It’s going to throw many households into a terribly difficult financial situation,” he told the BBC’s Today programme. “Forget the rises in mobile and broadband and tax and everything else and petrol and food. People will be panicking; it will be desperate.”
“Rishi Sunak, Liz Truss, Boris Johnson, if you’re listening, please, go and sit in a room together, make a collective decision now of what help you can give and make an announcement now to forestall the mental damage that is coming across the country,” Lewis implored. “There needs to be action now.”
Campaigners and the public have long been vocal about the help that is desperately needed. What exactly will it take for the government to finally listen?
Images: Getty
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