London Daily

Focus on the big picture.
Monday, Aug 17, 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
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Campaigners Press Government to Strengthen Rights for Four Million Gig Workers
Government Considers Higher Private Rents to Spread Asylum Accommodation Across UK
UK Moves to Protect Historic Pubs From Conversion Into Housing and Offices
Nigel Farage Wins Clacton By-Election to Return to House of Commons
British Manufacturers Report Rising Cybersecurity Threats Across Industrial Supply Chains
Royal Navy Increases Monitoring of Russian Ships in UK Waters by 25 Percent
England Adds More Than 350 Medical Training Posts to Strengthen NHS Capacity
NHS Waiting Lists Over 52 Weeks Rise by More Than 11,000 Patients
Brent Crude Near $88 Raises Fresh UK Energy Cost Concerns
UK Treasury Warns Prolonged Strait of Hormuz Disruption Could Cut 2027 Growth to 0.3 Percent
UK Economy Grows 0.4 Percent in Second Quarter as Energy and Inflation Risks Persist
UK Heatwave Triggers Emergency Alert as Government Unveils £65 Million Farm Support Package
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
UK Prime Minister Andy Burnham Takes Regional Tour to Highlight Local Infrastructure and Environmental Problems
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
Bank of England Warns Rising Inflation Could Squeeze UK Household Incomes
UK Government Announces £65 Million Aid Package for Farmers Hit by Severe Drought
UK Economy Grows 0.4% in Second Quarter Despite Energy Market Pressures
UK Issues Emergency Alert as Severe Wildfires Spread Across England and Wales
UK and Finland Discuss European Defence and Continued Support for Ukraine
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
UK Government Deploys Military to Help Fight Wildfires and Bans Disposable Barbecues
UK Records Hottest Day of the Year as Fifth Summer Heatwave Peaks in Southern England
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
×