900% British Gas Profit Increase Described As "Outrageous" While Families Struggle

Record British gas profits have been slammed by Sheffield Lib Dem Shaffaq Mohammed. He reacted to the news that British gas profits have soared by 900% at a time when many residents are struggling with the cost of living crisis that has seen food, energy and mortgage costs all increase massively, hitting more and more people harder.

British Gas Energy, saw profits increase from £98 million to £969 million over the last year– an increase of almost 900 %. This is widely attributed to the lifting of the energy price cap last year.

Ofgem claimed that the lifting of the price cap was to allow energy companies to offset losses resulting from the Covid-19 pandemic, and the Russian invasion of Ukraine, which forced British energy firms to purchase energy at prices above the cost cap.

Critics have however pointed out that Centrica, the firm which owns British Gas, is a producer of energy - and therefore benefitted from the surge in energy prices anyway.

Responding to the news that British Gas reported profits of almost £1bn in the first half of 2023, Liberal Democrat candidate for Sheffield Hallam, Shaffaq Mohammed, said:

“It’s outrageous that after months of struggle for ordinary people, the government is still allowing energy firms to rake in extraordinary profits. Ofgem have once again failed to do their job and stand up for consumers when their energy debt is rising to record levels and energy bills have doubled in recent years.

“These profits are yet another sign that the UK energy system is broken and is failing consumers. As British Gas profits have more than doubled, its consumers have seen their energy bills double in price. This is not acceptable.

“I will keep fighting for a proper windfall tax on excess profits to fund the support families desperately need. We want to double the Warm Homes Discount and extend it to all those receiving Universal Credit or Pension Credit, giving 62,896 households in Sheffield £300 each off their heating bills this year.

We are also calling for the winter fuel allowance to be doubled, benefitting 76,720 pensioners in our area and helping them keep their homes warm. On top of this, funding would be spent on helping people insulate their homes to slash heating bills in the long term.”

ENDS