London Daily

Focus on the big picture.
Thursday, Mar 05, 2026

Detail on promised energy help for firms delayed

Detail on promised energy help for firms delayed

Government support for businesses struggling with energy bills may not arrive until November.

However, the help would be backdated, and cover the period from 1 October, a government spokesperson said.

Last week Prime Minister Liz Truss said firms would get "equivalent support" to the help that was announced for households.

But companies have been in the dark as to what that actually means, including how much support they will get.

A government spokesperson said: "We will confirm further details of the business support scheme next week. The scheme will support businesses with their October energy bills, including through backdating if necessary."

The help may be backdated because the precise mechanism and amount of support may not be finalised till November, a government source said.

The support for business was also time-limited to six months, with an option to extend support for "vulnerable businesses" - but there was little indication of what that means either.
Alan Soady from The Federation for Small Business told the BBC "all businesses are vulnerable if they are energy users and let's face it, the problems in the gas market don't look they are going away in six months".

Unlike households - where a cap on the unit price for gas and electricity means an average household will pay £2,500 per year for energy - there is no such mechanism for businesses.

Firms have a huge variety of different contracts based on the intensity of their usage and the mix between gas and electricity.

Many big businesses also have their own energy buying departments and systems to insure themselves, or "hedge", against extreme price movements.

Also, unlike households, there is no price cap, and therefore no moment when everyone's bills will change.

Firms typically have one or two-year fixed contracts, but a significant number - the CBI estimates a third - traditionally come up for renewal before winter and in October.

The Department for Business, Energy and Industrial Strategy said meetings continue, to thrash out the details of their approach, and the business of government goes on during the official mourning period.

That will be little comfort to a business owner I spoke to last week agonising over whether to hand back the keys to his premises ahead of this winter.

The Prime Minister and Chancellor have written a blank cheque trying to avert a recession.

Households' knowledge their bills are fixed for the next two years will help in that endeavour, but few businesses will invest, hire, or sign a new lease until they know what help is coming their way, when and for how long.

If recession is to be avoided, the government will need to provide more detail, and reassurance as soon as possible.

Newsletter

Related Articles

0:00
0:00
Close
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
×