THE huge profits which energy companies are continuing to make amid the ongoing cost of living crisis were brought back into sharp focus today.

Scottish Gas owner Centrica and oil giant Shell reported bumper earnings today, sparking fresh debate over whether the UK Government is doing enough to tax their earnings and support hard-pressed households.

The renewed focus came despite the easing of energy prices in recent months which, in the case of Shell, meant its profits of £3.9 billion in the second quarter were less than half the £8.9bn it made for the same period last year and fell short of analysts’ expectations.

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British Gas made a record £1bn in the first six months of the year, helping parent Centrica make £2.1bn in adjusted operating profit, up 55% on the year before.

The UK Government responded last year to the outcry over the extraordinary profits energy companies were making after Russia’s invasion of Ukraine drove up oil and gas prices with the imposition of a windfall tax.

The energy profits levy, which hiked the headline tax rate on oil and gas company profits, sparked claims from major energy firms that the UK would become an unattractive place to invest and increase the country’s reliance on expensive imports of energy.

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But the Government watered down the policy in June with the introduction of a floor price, meaning that when oil and gas prices fall to a set level and remain there for two consecutive three-month periods the tax will no longer be applied.

While the change curried some favour with oil and gas company executives, it drew criticism from unions, anti-poverty campaigners and opposition politicians, who argued the move was premature and predicted energy bills would remain high for some time to come.

Today, shadow climate secretary Ed Miliband rubbished claims from Prime Minister Rishi Sunak that energy companies' windfall profits are being taxed to help consumers.

He told BBC Radio 4's World at One programme: "What a joker. The guy was dragged kicking and screaming to do a windfall tax. He's introduced a windfall tax full of holes."