Octopus Energy faces union recognition push as labour tensions grow

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Octopus Energy union challenge

Highlights

GMB union prepares to submit a formal proposal for voluntary recognition at Octopus Energy, citing concerns about worker representation, workloads, and training.
Octopus Energy became the UK's largest household energy supplier in early 2025 and sold a minority stake in Kraken for $1bn ahead of a potential IPO.
The union recognition effort follows collective grievances among Octopus Energy Services staff and signals rising labour tensions in a rapidly growing UK energy sector.

Recognition bid targets Octopus labour model

As first reported by Financial Times, GMB is preparing to submit a formal proposal for voluntary recognition at the London-based company after raising concerns over worker representation, workloads and training. The union's push follows a collective grievance lodged last year among installers of heat pumps and electric car charging points in Octopus Energy Services.

Tony Tanushi, GMB's regional energy officer, says management has shown "no appetite" for unionisation and adds that the union is prepared to take the matter to arbitration if a voluntary agreement fails. He says Octopus should match competitors if it wants to be viewed as a progressive company, while adding that the union is confident it has enough support to qualify for voluntary recognition, though it does not disclose numbers.

Octopus rejects the idea that a formal union structure is necessary, arguing that employee share ownership makes it less of a traditional "them and us" business. The company also says it is consistently named among the best places to work and criticises major energy unions for backing nationalisation and opposing widespread heat pump adoption, an area where Octopus has become a major employer.

The company notes it inherited union recognition arrangements when it acquired Co-op Energy in 2019, but says workers later voted to end them. Founder and chief executive Greg Jackson has publicly argued that bureaucracy can be stifling and has reportedly said he is not anti-union but does not believe unions are needed at Octopus because every employee owns shares in the business.

Growth raises stakes across energy sector

Octopus was founded in 2015 to challenge the Big Six suppliers and has expanded rapidly with backing from investors including Generation Investment Management and Tokyo Gas. It overtook British Gas at the start of 2025 to become the UK's largest household energy supplier, and later sold a minority stake in software arm Kraken for $1bn ahead of a potential IPO in New York or London in the next few years.

Despite its scale and political influence, the group has cultivated the image of a young challenger brand, helped by Jackson's public criticism of incumbents and informal management style. That image remains visible internally, with Jackson recently telling staff they can start later on Monday so they can watch England's World Cup match against Mexico, while promising snacks in the office for those covering shifts.

The union drive suggests Octopus is being drawn into a more conventional employment framework as it grows and broadens its operational base. It also exposes wider tensions in the UK energy market, where disagreements over heat pumps, labour standards and government policy are increasingly overlapping.

Our earlier article on Labour’s growth-versus-protections debate examined mounting criticism that the party has often put labour safeguards and other policy aims ahead of a clear growth-first strategy. We also noted how attention has turned to Andy Burnham’s positioning on regional development and devolution, with questions about whether Labour can deliver faster expansion while pursuing broader social and workplace goals.

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