The Government is set to extend support for the cost of business energy through next autumn for all businesses, possibly into spring 2024.
Chancellor Jeremy Hunt and Prime Minister Rishi Sunak are finalising a package that could be unveiled as soon as tomorrow extending support for all businesses to help with the cost of energy.
This extension could be as short as six months, according to the Sunday Times, or as long as over a year, according to the Financial Times.
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A Downing Street source told the Sunday newspaper that “no decisions have yet been made”.
However, according to the Sunday Times, the level of universal business support could be “less than half” of what is currently available, while there would be extra targeted support for hospitality and other customer-facing small businesses.
This autumn, the Government agreed to subsidise an energy price cap for six months under the Energy Bill Relief Scheme but companies were left in the dark as to what will happen post-March 31.
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Previously, the Government said it would only subsidise a handful of the most “vulnerable” industries.
The mooted change of heart is due to the Government worrying how businesses will cope if they are exposed to freewheeling energy prices just as the UK goes into recession.
Tightening up the Energy Bill Relief Scheme from April by reducing the level of subsidy reflects what will happen to the parallel household energy support package.
Hunt announced in the autumn statement in November that the domestic energy price cap would rise from £2,500 to £3,100 in April, meaning households face a £600 average increase in their bills.
More on energy cost support for businesses
