Any Economists On Here?

[maggiebee]

The cost of winter fuel payments is £3bn a year.

The profits of the big four gas supply giants in 2023 was £65bn.

Just wondering if any clever economists out there can see any possible solutions to this conundrum?

[SIRandyraven]

People were warned about voting in a Labour government.

A majority (well minority in reality) voted Labour and now we have Labour. 
Suck it up folks, it's going to be a rough ride unless you are a union boss.

[vulcan42]

£400? £80 wil[ go back as income tax, they've stopped the WFP of £300 so we'll be £20 better off.

[vulcan42]

Forgot to add, that's 38 pence per week.

[newmodarmy]

So the claim in the OP was ridiculous. Sounds like the sort of nonsense that pops up on Facebook, TikTok etc and some fall for it.  

[maggiebee]

Newmodarmy - a quick google will show just how much profit the four gas supply giants make.  If the OP is nonsense then perhaps you would like to supply the correct figures?  Many thanks.

[CrapatCryptics2]

Perhaps if our councils did a better job of chasing council tax and rent arrears it would have more funds.

[THECORBYLOON]

https://www.independent.co.uk/news/uk/home-news/energy-companies-profits-cost-of-living-crisis-fuel-b2496666.html

From February this year,

'Meanwhile, BP’s new chief executive, Murray Auchincloss, has praised his company’s “strong operational performance” over the past year as the oil giant announced $15.2bn (£12bn) in net profit, while Shell said it had made “good progress over the year” as its net profit hit $19.3bn.

Other big suppliers of natural gas to the UK – a key component in the supply of both heating and electricity to British homes – include US firm ExxonMobil, which made $36.01bn, and state-owned Norwegian firm Equinor, which posted $11.9bn in net profit. Together, they made $82.3bn around the globe, or around £65.4bn.'

 

[newmodarmy]

The profits are taxed so what's the net figure- certainly not £65billion?  Many countries have extra energy taxes at very high rates. And how much of that relates to domestic electricity and gas? The profits belong to shareholders like public and private sector pension funds and governments who invest in these companies all around the world. The idea of getting them all to share it out among a few million UK pensioners is, erm, let's just say a bit of a stretch. Why not share it out among the 5 billion or so who are poorer than UK pensioners- so that's maybe £5 each

[THECORBYLOON]

For BP, the article states, "its net profit hit $19.3bn." (emphasis added)

[THECORBYLOON]

Apologies, I gave Shell's figures, BP was, "$15.2bn (£12bn) in net profit"

[New Judge]

"...as the oil giant announced $15.2bn (£12bn) in net profit,"

I make that about 8% of the company's turnover. Not at all excessive IMHO.

 

[newmodarmy]

But our energy suppliers are EDF,  British Gas, Scottish Power, Eon , Octopus etc. They have to buy it on the open market , often in Norway and Russia.  

The companies mentioned in the £65billion figure are different companies- Shell, Mobil, BP who operate worldwide and deal in other markets than domestic energy- they inclued petrol sales for example. Yes, some of it goes to the UK domestic market for energy, but it's a tiny amount.

It's like saying McDonalds made $14billion profit worldwide so why can't they use it to fund free meals to all children (school dinners), hospital patients and prisons.

 

[Togo]

nma once again using a specious contrarian stance to make a nuisance of him/herself. Octopus/Scottish Power/Eon blah blah do not supply the gas. They are brokers, the middle men, distributers, call them what you like but they are not the gas suppliers they are the gas sellers after buying it in bulk! In fact we are paying tax on the gas more than once! Without BP, Shell, Exon or Equinor they would have nothing to, sell. You are right Maggie it is a disgrace. 

[newmodarmy]

OK, not sure if you're being serious or not there Togo . But yes British gas, edf,  don't supply the gas and electricity in the sense that they don't produce it...but they buy it and we pay them for it 

Yes Shell, BP etc are global companies who took advantage of the Ukraine crisis and made huge excessive profits, just as Russia did too....but unless we have a worldwide single government that's going to tax them more or regulate them, that won't change and won't pay for pensioners wain the UK. 

But as for the 12 billion given by UK in foreign aid for climate change initiatives...