Energy giants to hand shareholders bumper £10 BILLION payout

Shell and BP shareholders will receive a bumper £10 billion payout – the equivalent of £363 per struggling UK household.

The mega payment comes amid warnings that the energy price cap could soar beyond £3,300 in October – a staggering £350 rise per household.

And in April next year, bills could hit as high as £4,400, according to analysis by consultancy Cornwall Insights.

Speaking to The Sun, Shadow Chancellor Rachel Reeves said: “The country is in the grip of a catastrophic energy crisis and the Conservatives are giving handouts to the oil and gas giants, who are throwing money at their shareholders.

“This is a scandalous failure of the government.”

‘Scandalous’

Energy bosses will face pressure from ministers about how they can help customers cope with rising bills at a crunch meeting on Thursday.

Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng will press gas and electricity company executives for solutions to the predicted spike in bills over winter.

The summit with utilities bosses, expected to take place in Downing Street, comes after Cornwall Insight predicted bills are set to soar to around £3,582 in October, from £1,971 previously, before rising even further in the new year.

Executives are being asked to submit a breakdown of expected profits and payouts, as well as investment plans for the next three years.

Former prime minister Gordon Brown has suggested scrapping the price cap and negotiating lower rates with energy bosses, according to reports.

Shell under fire

Rishi Sunak and Liz Truss continue to face questions about what they will do to help struggling families, while Labour has called for a “loophole” in the oil and gas windfall tax to be closed to raise more support cash.

Reeves said: “The government should be ashamed this loophole existed in the first place.

“This isn’t right at a time when people are worried sick about how they’ll pay their bills.”

A Shell spokesperson said: “We understand the worry for millions of people about how high energy costs are challenging their household budgets – and the need for support to help make ends meet, and we will work with the government on potential solutions.

“Shell is using its financial strength to invest in secure energy supplies that the world needs.”

Henry Goodwin

Henry is a reporter with a keen interest in politics and current affairs. He read History at the University of Cambridge and has a Masters in Newspaper Journalism from City, University of London. Follow him on Twitter: @HenGoodwin.