The government will end the windfall tax on bumper oil and gas profits in 2028, if prices drop.
The move is in response to fossil fuel companies warning they are cutting back on investment.
The windfall tax – 75% of North Sea oil and gas production profits – will continue for the next five years but the government has announced that if prices fall to historically normal levels for six months the tax rate for oil and gas companies will return to 40%.
Prices had reached historic highs following the invasion of Ukraine, resulting in record profits for oil and gas producers such as Shell and BP.
Companies do not pay the full 75% or 40% rate as they can offset tax liabilities on investment they make.
Though the windfall tax included an investment allowance the government said if it didn’t end when prices come down the long-term future of the UK’s domestic oil and gas supply is at risk, as the country would import more from abroad.
The windfall tax, known as the energy profits levy, has raised around £2.8bn to date, the government added, and is expected to raise almost £26bn by March 2028.
Funds raised have been used to support household energy schemes such as the energy price guarantee, which limits typical domestic energy bills until the end of June.
No new oil and gas projects can be developed if the world is to stay within safe levels of climate change, the International Energy Agency said more than two years ago.
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But the Treasury said it would be “irresponsible to turn off the North Sea taps overnight”.
“Without oil and gas from British waters, we would be forced to import even more from overseas, putting our security of supply at risk,” Gareth Davies, exchequer secretary to the Treasury, said.
The tax will end when prices fall to $71.40 per barrel of oil and 54p per therm of gas for six months. At present a barrel of brent crude oil is trading around $75 a therm of gas is roughly 60p.
Supporting new oil and gas projects in the North Sea has been politically contentious in recent weeks. Labour has come under pressure from the GMB union and the prime minister over its policy to ban new fossil fuel projects in the waters off the UK.
Labour leader Keir Starmer said he would work with unions to “seize the opportunities” of green energy to prevent mass job losses and avoid mistakes of the 1980s which decimated coal communities.
Today’s announcement has been welcomed by industry and politicians but not campaigners.
Offshore Energies UK, formerly Oil and Gas UK, but the group said more needed to be done and details of the government plan need to be understood.
“Enabling continued UK energy production now and in future depends on a predictable and fair fiscal environment. The UK must be competitive if we are to be successful in the global race for energy investment,” a spokesperson said.
“We provide over 200,000 good, skilled jobs across the length and breadth of the UK.”
Labour cautiously welcomed the policy end but said there were problems with loopholes in the how the tax currently operates with much of the money not being collected.
It’s “right there is a strategy for bringing those taxes to an end when the time is right, because it should only be on the basis of un-forecast profits”, said Labour’s shadow immigration minister Stephen Kinnock.
NGO Global Witness said the policy announcement was obscene. It show government “has learned nothing from the energy crisis and is intent on returning to business as usual as quickly as possible”.
“That means doing nothing to reduce our dependence on oil and gas, doing nothing to provide price security for consumers, and doing nothing to rein in climate breakdown. The fossil fuel industry has used its enormous influence and power to fight the windfall tax, and it is an affront to humanity that it appears to have won,” a spokesperson said.
Changes to how death certificates are issued in England and Wales have made the grieving process more “stressful”, according to bereaved families.
Anne Short died on New Year’s Eve, only a few months after she was diagnosed with cancer.
Her son Elliot, 30, from Newport, South Wales, says the grieving process was made harder after having to wait eight weeks to hold her funeral.
“Quite frankly, it’s ridiculous, when you’re already going through all this pain and suffering as a family,” he told Sky News.
“You can’t move on, you can’t do anything, you can’t arrange anything, you can’t feel that they’re at peace, you can’t put yourself at peace, because of a process that’s been put in that nobody seems to know anything about at the moment.”
That process has been introduced by the government to address “concerns” about how causes of death were previously scrutinised, following high-profile criminal cases such as those of Harold Shipman and Lucy Letby.
Up until last September, causes of death could be signed off by a GP, but now they have to be independently scrutinised by a medical examiner, before a death certificate can be issued.
Image: Anne Short
‘I felt helpless’
Mr Short said he was ringing “twice a day” for a progress update, but that it was “going through too many sets of hands”.
Until the death certificate was issued, Ms Short’s body could not be released into the care of the funeral director.
“The main stress for me was knowing that she was up there [at the hospital] and I couldn’t move her, so I felt helpless, powerless,” he said.
“I felt like I’d let her down in a lot of ways. I know now, looking back, that there’s nothing that we could have done, but at the time it was adding a lot of stress. I just wanted her out of there.”
Image: Elliot Short had to wait eight weeks to hold his mother’s funeral
‘Something has to be done’
Mr Short fears there’s a risk the new process might defeat its purpose.
“There’s other people that I know that have lost since, where it’s been in a care home or something like that, where they haven’t been happy with the care they’ve had, but they haven’t raised that because you’re in this bubble of grief and you just want to get it done,” he said.
“Something has to be done about that because I think it just drags on the grief and there’s obviously a danger then of it being against the reasons why they’re trying to do it.”
Arrangements after the death of his father less than two years ago was a “much easier process”, according to Mr Short.
“I lost my father as well 15 months before, so we went through the process prior to this coming in and we had the death certificate, he died at home, but we had it within three days,” he added.
Image: Elliot Short
‘State of limbo’
James Tovey is the sixth generation of his family running Tovey Bros, a funeral director in Newport.
He told Sky News that the delays were having a “huge impact” on the business and that the families they serve were being “left in a state of limbo” for weeks after their bereavement.
“I would say that most funerals will take place perhaps two to four weeks after the person’s passed away, whereas now it’s much more like four to six weeks, so it is quite a significant difference,” he said.
“It’s one thing on top of an already distressing time for them and we’re frustrated and upset for [the families] as much as anybody else and it’s just annoying that we can’t do anything about it.”
Image: James Tovey
Mr Tovey said that the reform was “very useful” and he remained supportive of it.
“It’s just the delays. I’m sure they can do something about that over time, but it’s just waiting for that to happen, and I wish that could be addressed sooner rather than later,” he added.
“It does put pressure on other people, it’s not just ourselves, it’s pressure on the hospitals, on crematoria, on the registrar service and everyone else involved in our profession.
“But of course all of us we’re there to serve the families, and we’re just upset for them and wish we could do more to help.”
Image: The organisation representing funeral directors has called for “urgent action”
The National Association of Funeral Directors said some areas of England and Wales are experiencing much shorter delays than others, but has called for “urgent action”.
Rachel Bradburne, its director of external affairs, said the system was “introduced for all the right reasons” but that it was “not working as well as we need it to”.
“Funeral directors are relaying stories of delays, frustration, and bottlenecks on a daily basis, and urgent action is required to review and recalibrate the new system,” she added.
‘Unintended consequences’
Dr Roger Greene is the deputy chief executive of bereavement charity AtALoss.
He told Sky News that the delays were “one of the unintended consequences of what’s a well-intended reform of a system”.
“What has actually happened is that the number of deaths now requiring independent scrutiny has trebled,” he said.
“So in England and Wales in 2023, the last full year of data, there were nearly 200,000 deaths reported to a coroner, whereas there were 600,000 deaths.
“Now, what is the change in the process is that all deaths now need to be reported for independent scrutiny.”
Image: Dr Roger Greene
Dr Greene said there may be ways the system could be “tweaked a little bit”, such as giving medical examiners the ability to issue an interim death certificate.
“We believe that people can process grief well if they’re given the opportunity and they’ve got a proper understanding,” he added.
“But the systems that we have in the country need to be able to work as well with that diversity of faith and culture.”
‘Vital improvements’
Jason Shannon, lead medical examiner for Wales, told Sky News he recognised “the importance of a seamless, accurate and timely death certification process”.
“Medical examiners are one part of the wider death certification process and were introduced to give additional independent safeguards as well as to give bereaved people a voice, which they hadn’t had before,” he added.
“Medical examiners have no role in determining where the body of a family’s relative is cared for and except in a minority of deaths where a coroner needs to be involved, that decision should be one that a family is fully empowered to make in a way that is best for them.”
A Welsh government spokesperson said they “would like to apologise to any families who have experienced delays in receiving death certificates”.
The government said it was working with the lead medical examiner and the NHS in Wales “to understand where the delays are” and how to provide bereaved families with “additional support”.
A spokesperson for the Department of Health and Social Care said it recognised there were “some regional variations in how long it takes to register a death”.
They added that the changes to the death certification process “support vital improvements to patient safety and aim to provide comfort and clarity to the bereaved”.
Social media influencers are fuelling a rise in misogyny and sexism in the UK’s classrooms, according to teachers.
More than 5,800 teachers were polled as part of the survey by the NASUWT teaching union, and nearly three in five (59%) of teachers said they believe social media use has contributed to a deterioration in pupils’ behaviour.
The findings have been published during the union’s annual conference, which is taking place in Liverpool this weekend.
One motion that is set to be debated at the conference calls on the union’s executive to work with teachers “to assess the risk that far-right and populist movements pose to young people”.
Andrew Tate was referenced by a number of teachers who took part in the survey, who said he had negative influence on male pupils.
One teacher said she’d had 10-year-old boys “refuse to speak to [her]…because [she is] a woman”.
Another teacher said “the Andrew Tate phenomena had a huge impact on how [pupils at an all-boys school] interacted with females and males they did not see as ‘masculine'”.
While another respondent to the survey said their school had experienced some incidents of “derogatory language towards female staff…as a direct result of Andrew Tate videos”.
Last month, Prime Minister Sir Keir Starmer hosted a discussion in Downing Street on how to prevent young boys from being dragged into a “whirlpool of hatred and misogyny”.
The talks were with the creators of Netflix drama Adolescence, which explored so-called incel culture.
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3:15
Starmer meets Adolescence creators
‘An urgent need for action’
Patrick Roach, the union’s general secretary, said “misogyny, racism and other forms of prejudice and hatred…are not a recent phenomenon”.
He said teachers “cannot be left alone to deal with these problems” and that a “multi-agency response” was needed.
“There is an urgent need for concerted action involving schools, colleges and other agencies to safeguard all children and young people from the dangerous influence of far-right populists and extremists,” Mr Roach added.
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A spokesperson for the Department for Education (DfE) said: “Education can be the antidote to hate, and the classroom should be a safe environment for sensitive topics to be discussed and where critical thinking is encouraged.
“That’s why we provide a range of resources to support teachers to navigate these challenging issues, and why our curriculum review will look at the skills children need to thrive in a fast-changing online world.”
Former Rochdale player Joe Thompson has died aged 36.
His former club said it was “devastated” to learn of his death.
Thompson, who retired in 2019, was diagnosed with cancer for a third time last year.
In its statement, Rochdale FC said he died “peacefully at home on Thursday, with his family by his side”.
He made over 200 appearances for Rochdale, who he joined from Manchester United‘s academy in 2005.
The club posted a tribute on X, describing the former midfielder as “a warm personality who had a deep connection with our club from a young age”.
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In her tribute on Instagram, Thompson’s wife Chantelle said he had “made such an impact on so many people” and he was “the most incredible husband, son, brother, friend and father”.
During his career, he played for Tranmere Rovers, Bury and Carlisle United, with spells on loan at Wrexham and Southport.
He was first diagnosed with Hodgkin lymphoma in 2013, while playing for Tranmere.
When Thompson rejoined Rochdale from Carlisle in 2016 the disease soon returned, but he confirmed he was cancer free in June 2017.
Two years later, he announced his retirement at the age of 29, saying his body had been pushed “to the limit” having twice undergone treatment for cancer.
Last year, he revealed he had been diagnosed with stage four lymphoma which had spread to his lungs.