London Daily

Focus on the big picture.
Friday, Jun 19, 2026

Thousands of small businesses face 'tough decisions' after change to energy scheme

Thousands of small businesses face 'tough decisions' after change to energy scheme

The Energy Bills Discount scheme was introduced to provide UK businesses, charities and the public sector support with energy bills but non-domestic energy users will see bills discounted rather than capped.

Hundreds of thousands of small businesses could face "tough decisions" following changes to the energy support scheme, according to the Federation of Small Businesses.

The Energy Bills Discount scheme has been introduced to provide UK businesses, charities and the public sector support with energy bills.

This scheme for non-domestic energy users will see discounts provided on high energy bills until 31 March 2024.

Until now, the Energy Bill Relief scheme capped energy costs, but the new support measure will only see bills discounted.

The Federation of Small Businesses (FSB) estimates around 370,000 small businesses will be negatively impacted by it.

Craig Beaumont, Chief of External Affairs at the FSB, told Sky News that these small businesses will face "tough decisions" in the months ahead.

He said: "We'll see some small businesses reduce their hours of operation, we'll have some having to let staff go, or look at other major expenditures.

"We expect some small businesses to close down altogether."

Mr Beaumont added that the new support scheme "won't help their bills".

He said: "The first government energy scheme was a fixed price, this second scheme is only a small discount, which means that while before you'd have your bill cut to about 25% of what it would've been, your new bill will be nearly exactly where it was last August.

"For a specific group of firms this is really bad news - if you're variable tariff or if you're out of your contract you're okay.

"But if you're fixed - especially if you fixed last August - you're in serious trouble."

Ruby Byrne, owner of Ruby B Salon


Ruby Byrne, owner of Ruby B Salon, told Sky News that her "worst case scenario" is struggling with costs so much that she has to sacrifice the service she provides her clients.

She's already considering solutions should she struggle to pay bills.

Ms Byrne said: "In the 13 years that I've been open, I've only ever increased my prices once.

"I may have to do it again so that's going to affect what clients I get, if they come back, and how often they come.

"That's obviously going to affect my business."

A government spokesperson told Sky News: "Companies large and small will benefit from the baseline discount through our new energy bills scheme and do not need to apply for it, and a higher level of support will be provided to the most energy and trade-intensive businesses of all sizes.

"While no national government can control the global factors pushing up the price of energy and other business costs, we continue to stand by business.

"That's why we provided them and other non-domestic energy users with an unprecedented package of support, enabling some businesses to pay around half of predicted wholesale energy costs this winter."

Newsletter

Related Articles

0:00
0:00
Close
Payment Fraud Losses Reach £1.28 Billion and Raise National Security Concerns
Lending to Small Businesses Climbs to Highest Level Since Late 2024
Middle East Conflict Clouds UK Economic Recovery Despite Strong First-Quarter Growth
Bank of England Moves to Simplify Capital Rules for Smaller Lenders
UK Government Fast-Tracks National Security and Cyber Resilience Legislation
Ofcom Investigates Telegram Over Alleged Role in Organising Arson Attacks
MPs Press Fujitsu to Speed Compensation for Post Office Horizon Victims
Bank of England Delays Final Basel III Implementation Changes to Support UK Banking Competitiveness
Pound Falls as Political Uncertainty and Bank of England Signals Weigh on Markets
0Andy Burnham Wins Makerfield By-Election and Emerges as Main Challenger to Keir Starmer
Dorset Council Tests AI Tools to Streamline Local Planning Applications
UK Researchers at Kew Gardens Use AI to Speed Up Identification of Threatened Plant Species
UK Gilt Yields Ease Toward 4.8% as Inflation and Labour Market Data Weigh on Bonds
Bank of England Data Shows Resilient SME Lending Despite Economic Slowdown
UK Finance Reports Weakening Services Activity as Business Confidence Softens
UK Introduces Mandatory Internal Complaints Process Under Data Use and Access Act
Bank of England Governor Andrew Bailey Flags Geopolitical Uncertainty as Key Risk to Inflation Outlook
Bank of England Holds Interest Rates at 3.75% as Policymakers Signal Cautious Stance on Inflation Risks
Cornwall Clergy Raise £40,000 for Church Repairs Through Everest-Themed Charity Challenge
UK Business and Social Landscape Reflects Strain From Geopolitical and Domestic Pressures
Tensions Grow in UK Over Sikh Kirpan and Religious Symbolism in Public Debate
Energy Price Cap Increase Set to Lift UK Household Bills by 13 Percent
University of Reading Ranked 196th in QS World University Rankings
UK Maritime Archaeologists Identify 17th-Century Dutch Shipwreck Off Devon Coast
Oxford Union Islam Debate Sparks Protest From Faith Leaders in UK
UK Social Cohesion Debate Intensifies After Religious Prejudice Survey Findings
UK SME Lending Rises Despite Geopolitical Uncertainty and Cautious Outlook
Foreign Demand for UK Gilts Remains Sensitive to Global Inflation Trends
Labour Party Faces Leadership Pressure After Weak Local Election Results in UK
Transport Costs Drive Inflation Pressure as Petrol Prices Push Up UK CPI
British Chambers of Commerce Cuts Growth Forecast as Middle East Conflict Weighs on Investment
UK Economy Grows 0.6 Percent in First Quarter but Outlook Remains Weak
Bank of England Holds Interest Rates at 3.75 Percent as Inflation Risks Persist
Energy Price Cap Rise Expected to Keep UK Inflation Above Target Through 2026
Health Authorities Warn of Rising Cases of Seasonal Respiratory Illnesses
BAE Systems and Rolls-Royce Advance Multi-Nation Fighter Aircraft Programme
National Archives Publish Declassified Documents on Cold War Energy Security Planning
British Retail Spending Rises Despite Continuing Cost-of-Living Pressures
Wales Launches Social Housing Pilot to Address Affordability Pressures
British Energy Companies Commit £5 Billion to Geothermal and Hydrogen Projects
Northern Ireland Debates Cross-Border Healthcare Partnership With the Republic of Ireland
UK Establishes National Artificial Intelligence Safety Centre With Leading Universities
UK Reports Decline in Small Boat Crossings After Expanding Intelligence Cooperation With France
Scottish Parliament Launches Inquiry Into Delays to Renewable Energy Projects
National Crime Agency Dismantles Alleged Multi-Million-Pound Money Laundering Network in London
Transport Strikes Disrupt Rail and Bus Services Across Northern England
United Kingdom and European Union Open New Security Dialogue on Defense and Border Cooperation
Bank of England Holds Interest Rates at 5% as Services Inflation Remains Elevated
UK Government Unveils Major National Health Service Reform Focused on Decentralization and Performance Funding
Government Advances New Airport Slot Rules to Ease Airline Operating Constraints
×