Mike Reader MP, member of the Energy Security and Net Zero Select Committee and SERA Executive Committee – LabourList article published 30/04/26
Trump’s reckless war on Iran, cheered on by the Conservatives and Reform, has once again left ordinary people paying the price for a conflict they neither support nor control.
The closure of the Strait of Hormuz has laid bare the vulnerabilities of an energy system reliant on oil and gas. Petrol prices are surging, and while the Energy Price Cap offers short-term relief, many of my constituents are already anxious about what this means for their bills this winter.
Yet, while families worry about how to make ends meet, this week gave us a stark reminder of who is profiting from this crisis. Oil and gas giant BP announced it has more than doubled its profits on last year, raking in more than $3 billion in just three months. Their sky-high profits mean sky-high bills for everyone else.
When gas prices soared after Russia’s invasion of Ukraine, the Conservatives reluctantly introduced a windfall tax – months too late – which, allowed oil and gas companies to pocket most of the windfall. Now, just as prices spike again, they want the tax scrapped.
And alongside Reform, they are calling for increasing our dependence on oil and gas, despite this being the second fossil fuel price shock in just four years. Time and time again, they have proven to be on the side of billionaires, not bill payers.
We must reject the false promise of more North Sea drilling. It won’t take a penny off bills, will do nothing to ease the pressure on families today and do nothing to secure Britain’s energy future. The North Sea is now a mature, high-cost basin. More than 90% of its reserves have already been extracted, and Britain’s reliance on oil and gas imports will rise no matter how many new licences are issued, unless we shift to renewables.
Some have argued that there are untold riches for the exchequer lying beneath the North Sea, if only we would allow more drilling. This is simply a fairytale. The best supplies have already been tapped and there are far more competitive basins around the world. When international oil prices are low, the industry cuts jobs here. When prices are high, it calls for tax breaks so it can cream off more of the profit. These claims do not have the taxpayer’s best interests at heart.
Worse still, new drilling would deepen the climate crisis. As oil and gas giants cash out, the public is left bearing all the costs – not just on bills, but through increased flooding, the cost to health from rising temperatures, not to mention damage to our homes, infrastructure and wildlife.
Switching to clean power is the only path to escaping the fossil fuel rollercoaster. That is why record numbers of people are now turning to solar panels, heat pumps and electric vehicles – taking back control and shielding themselves from future price shocks.
For too long, clean technology has been the preserve of those who can afford the upfront cost. Labour is taking a different path. The government has announced multiple measures to help more people make the switch from volatile fossil fuels to clean, homegrown power.
Plug-in solar panels, soon to be available on the high street, will help renters and flat owners cut their bills by generating free electricity from the sun. We are removing barriers to on-street EV charging, so electric cars are not just for those with a driveway. We have increased funding to upgrade social housing, while Great British Energy is putting solar panels on schools so they can spend more on pupils, not power costs. The Warm Homes Plan is providing grants for low-income households to install solar panels and heat pumps, alongside low-interest loans for others who want to upgrade their homes.
These steps are welcome but we must seize this moment to go further and be bolder. That means reforming the energy market so cheaper renewables actually cut bills today. It means making the system more flexible, so people can charge their cars when the sun is shining, and driving down electricity prices, which benefits both households and industry.
We must demand that the oil and gas industry supports the energy transition by investing in training that will help workers to move into clean energy. We must also make sure that those new jobs are not just jobs but long term careers, with decent pay and conditions.
Labour is committed to the long-term task of restoring security and stability for working people, protecting them from the volatility and high costs of global fossil fuel markets. By investing in home-grown clean energy, we can cut bills, create good jobs and deliver the energy security Britain needs. We must not be distracted by soundbite solutions that will only serve to fill the pockets of oil and gas giants.