More big energy users to get help as support plan expanded
Expanded Energy Support Targets Additional Businesses
The government has pledged additional assistance to businesses, with more companies set to benefit from energy cost reductions starting in April 2027. Around 10,000 energy-intensive manufacturers across industries like steel and pharmaceuticals may see their bills slashed by up to 25% under the revised plan. This follows the announcement of an expanded support initiative, initially outlined in 2025, which now aims to cover more firms than its original target of 7,000.
Industry Response to Rising Energy Costs
The decision comes amid a recent spike in oil and gas prices, though these have since dipped from their peak levels seen after Russia’s invasion of Ukraine. While the war in Iran contributed to higher costs, optimism for a conflict resolution has eased price increases. Business groups have praised the expansion, highlighting that high energy expenses remain a key challenge for UK enterprises.
The British Industrial Competitiveness Scheme (BICS), introduced last year, will now be broadened to enhance economic security and competitiveness. “When global instability pressures businesses, we’ll always act to safeguard their needs and Britain’s resilience,” stated Business Secretary Peter Kyle in a statement.
Funding and Eligibility Details
The program will be financed through adjustments to the energy system and public spending, ensuring domestic energy costs remain unaffected. From April 2027, qualifying firms will face reduced electricity charges tied to net zero goals, alongside a one-time payment covering support they would have received had the scheme begun earlier. Businesses can determine their eligibility using Standard Industrial Classification codes on the government’s business department website.
Critics Argue for Broader Measures
Despite the expansion, some industry representatives claim the plan falls short. The Conservative Party pointed out that sectors such as pubs, restaurants, farming, and retail, which are already struggling, will not be included. Shadow energy secretary Claire Coutinho remarked that the scheme would aid only 0.2% of firms, suggesting a better approach would involve lowering living costs and boosting growth by cutting green levies to make electricity more affordable.
While the initiative supports high-energy users in automotive, aerospace, steel production, pharmaceuticals, and other key industries, critics note that UK businesses face electricity rates up to 50% higher than EU competitors and more than double those in the U.S. The British Chambers of Commerce reported that 40% of businesses across all sectors are grappling with energy affordability.
