In the News

Centrica announces 500% increase in profit & £59m dividend

Graham Watson

28th July 2022

Here's the cost of living crisis in a nutshell - rising prices are driven by supply-side factors, but also by the extent to which some companies are making profits.

Many argue that this is at the expense of their workers and consumers. British Gas owner, Centrica has announced a massive rising in adjusted operating profit: "to £1.34bn from £262m a year earlier."

Profit-push inflation has become a new term in the economics lexicon. Read a little more about it here.

So who gains - shareholders who gain an interim dividend of 1p per share, but not workers, who've delivered that profit or consumers?

This is perhaps where the battle-lines are being drawn, and it's why many workers are being tempted to support industrial action.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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