Trade unions are calling on Labour to introduce a social energy tariff funded by a windfall tax on bank profits as household energy debt continues to climb.
The Trades Union Congress says ministers should use Labour’s party conference to go further on the cost of living after new Ofgem figures showed more than two million gas and electricity accounts are in arrears without a repayment plan.
There were 1.19 million electricity accounts in arrears in the second quarter of 2026 and around 955,000 gas accounts. Ofgem says the figures represent 4% of electricity customers and 3.9% of gas customers respectively, with both totals rising 5% in just three months.
Total domestic energy debt and arrears has now reached £5.02 billion, up 13% in a year.
The TUC wants the Government to introduce a permanent social tariff giving discounted energy to lower and middle-income households.
Its proposal would cut bills by as much as £517 a year they say, for the lowest-income households during periods of acute energy-price pressure, with smaller discounts extending further up the income scale.
The union body says the scheme could be financed by increasing the bank corporation tax surcharge, currently set at 3% on qualifying profits above £100 million.
It estimates a 16% surcharge could raise around £24 billion over four years while increasing it to 35% could generate around £60 billion. The TUC says even restoring the surcharge to 8% could raise around £9 billion.
Its General Secretary Paul Nowak said: “Energy costs are crushing households up and down the country – with many getting into debt just to keep the lights on.”
He added: “That’s why the government should cut household energy bills with a social tariff – paid for by taxing banks’ enormous profits.”
The TUC argues Labour now faces pressure from its trade union allies to combine existing energy-bill measures with more direct support for households as prices rise again into winter.
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