The General Secretary of the TUC is demanding a tax grab on bank profits in the Chancellor’s October budget to cut household bills.
Paul Nowak says since taxpayers bailed out banks during the 2008 financial crisis and that now they are making maximum profits, they should support the public.
The leader of the UK’s trade unions warns that, at the TUC congress next week, he will make a “very clear call” on the government to introduce a social tariff on energy bills which could support two thirds of households by saving them up to £560 a year.
Speaking to Sky News, Mr Nowak said: “We’ve got one in three people at the moment afraid to run the hot water or to put the heating on because of the cost of gas and electricity.
“At the same time, Britain’s banks are making £1bn – or the big four banks – are making £1bn pounds in profits each and every single week.”
His statement follows a poll the TUC published which suggests the majority of the public and supporters of all parties want to see a reduction on energy bills by taxing banks.
Banks currently pay a surcharge of 3% on profits of more than £100 million, on top of corporation tax of 25%. Until 2023, the surcharge was 8% on profits above £25 million.
Mr Nowak has welcomed the current measures that have been announced by the Prime Minister since his appointment.
He said: “The prime minister has been right to talk about breathing space policies to give some respite to hard-pressed families.
“He took VAT off energy bills, he’s held down bus fares, he’s given support to pubs and clubs, that’s all very welcome. But we think that in the face of those real increases in gas and electricity bills this autumn, the government really needs to step up to the plate and to go further and faster.”
The calls follow the recent announcement that the energy price cap will rise by 4% in October, causing concern for an increase to household bills.
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