London Daily

Focus on the big picture.
Sunday, Apr 05, 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
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
×