Soaring Lloyds profits "further proof" banks can pay more tax to cut bills – TUC

• Lloyds profits exceed market expectations and soar by 23% hitting £4.3 bn in the first half of 2026 
• This is compared to £3.5bn profits in the first half of 2025

As Lloyds announce surging Q2 pre-tax profits of £2.3bn billion, bringing its half year 2026 profits to £4.3 billion – up 23% on the first half of last year – the TUC is today (Thursday) calling for the government to increase taxes on banks to bring down energy bills.

The union body wants the government to use the money to pay for a social energy tariff that brings down energy bills by up to £559 a year for those on low and middle incomes.

Currently the bank surcharge is an additional 3% corporation tax on the profits of banking companies above £100 million, which was reduced from 8% in April 2023 by the Conservatives – just as bumper profits kicked in alongside higher interest rates.

The TUC is calling for the government to increase the surcharge to raise up to £60 billion over the next four years. 

• A 16% surcharge, which is doubling what it originally was before the Conservatives cut it, would deliver £24bn over four years.

• A 35% surcharge, which would be the same level as the windfall tax the Conservatives imposed on energy companies, would deliver £60bn over four years.

Even the bare minimum of reversing the Tory cuts and setting it at 8% would raise £9bn over four years.

This could pay for a social tariff to bring down energy bills to all those on low and middle incomes by up to £559 a year.

Responding to Lloyds' half-year pre-tax profits, TUC General Secretary Paul Nowak said: 

"This is further proof that we need to increase the bank surcharge. Big banks are making a fortune on the back of higher interest rates. 

"It's plain common sense. While bank profits are booming, working people are struggling with mortgage misery and higher bills. 

"Andy Burnham has hit the ground running on tackling the cost of living. But with no clear end in sight to the war in Iran, energy prices will rise further – and the government needs to keep going on support. 

"Taxing banks to cut energy bills would show clearly that the new prime minister is on the side of working people. It's the right thing to do and banks can easily afford it."