London Daily

Focus on the big picture.

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

London Daily
0:00
0:00
Close
Kamala Harris Wins Post-Debate Survey Against Donald Trump
Impact and Aftermath of 9/11 Attacks on the US and the World
Iran Denies Missile Deliveries to Russia Amid New Sanctions
Kamala Harris Claims to Own Guns, Denies Supporting Mandatory Buyback—Yet Said the Opposite Weeks Ago
Outrage in Uxbridge: 12 Police Officers Arrest Woman Over a Sandwich, Then Arrest Bystander for Swearing
Polaris Dawn: Historic Private Spacewalk Initiated
Sir Paul Marshall Acquires The Spectator for £100 Million
Neighbours Criticise Germany Over Extended Border Controls
Mazan Village in Shock Over Mass Rape Trial
Harris Commands Debate Against Trump
Wealthy Nations Criticized for Hypocrisy on Climate Protests
Controversial Netanyahu Documentary Premieres in Toronto
Labour's Winter Fuel Cut Passes Amid Controversy
Germany's New Border Controls: A Threat to EU Unity?
Global Religious Groups Spend Billions to Undermine Gender-Equality Education
Dave Grohl Announces Birth of Baby Girl
Brigitte Macron to Make Cameo in Netflix's Emily in Paris
Olympic Medals Stolen from Australian Rower's Car in Melbourne
Russia Receives Iranian Ballistic Missiles for Use in Ukraine
US and Europe Consider Easing Restrictions on Ukraine's Long-Range Strikes
Brazilian President Visits Amazon Amid Severe Drought and Wildfires
Concerns Raised Over Early Release of Prisoners
Labour Special Advisers Join Union Over Pay Concerns
NHS Trust Admits Contaminated Feed Caused Baby's Death After Decade of Denial
Dubai Conference Cancels Talk by Ex-Children’s Hospital Doctor Under Investigation
Manchester Adopts 'Housing First' to Combat Rough Sleeping
Airbnb Calls for More Power to Cornwall Council
EU Court Orders Google to Pay €2.4 Billion Fine
Apple Ordered to Pay Ireland €13bn in Unpaid Taxes
State Pension to Rise by £460 Next Year
Jeffrey Titford, Former UKIP Leader, Passes Away at 90
Grandmother Jailed for Stealing £70,000 from Bramcote School
Former Minister Sentenced for Defrauding Church and Widow
King Charles III to Undertake Extensive Australia Tour Amid Cancer Treatment
Early Release of Over 1,700 Prisoners Sparks Safety Concerns
UK Halts Iran Flights Amid New Sanctions
Prince William Celebrates Kate's Milestone and Welsh Culture
Government Plans Winter Fuel Payment Cuts After Commons Vote
Sir Keir Starmer Addresses Unions on Pay Decisions
Watchdog Recommends Expanding Acceptable ID for Voting
Internet Surpasses TV as UK's Leading News Source
House of Lords Warns UK Must Address Unsustainable Debt
Victims Unaware of Offenders' Early Release in England and Wales
Top Former US Military Leaders Endorse Kamala Harris, Criticize Trump
Kate Middleton Completes Chemotherapy, Gains New Perspective
Australia Implements Minimum Age for Social Media Use
Kim Jong Un Announces Increase in North Korea's Nuclear Arsenal
Chancellor Faces Labour MPs Over Winter Fuel Allowance Cut
Report Criticizes Sunak and Braverman for Comments on Met Police
Peter Nygard Sentenced to 11 Years for Sexual Assault
×