Government unveils energy support package to ‘stop businesses collapsing’
Firms have been given a boost in dealing with the energy crisis through a government discount, with the chancellor saying it “stepped in to stop businesses collapsing”.
Plans were unveiled this morning, cutting prices for non-domestic energy customers, while suppliers will reduce wholesale costs to help families.
The measures, announced by the department for Department for Business, Energy and Industrial Strategy, is in addition to the recently announced Energy Price Guarantee.
Firms will get a shot in the arm through the Energy Bill Relief Scheme, providing a discount on wholesale gas and energy prices. This covers non-domestic customers, including businesses, charities and the public sector.
It will apply to fixed contracts and will apply to energy usage from 1 October to 31 March.
Prime Minister Liz Truss said: “As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.
“At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”
Chancellor Kwasi Kwarteng said: “We have stepped in to stop businesses collapsing, protect jobs, and limit inflation. And with our plans to boost home-grown energy supply, we will bring security to the sector, growth to the economy and secure a better deal for consumers.”
New Business Secretary Jacob Rees-Mogg added: “We have seen an unprecedented rise in energy prices following Putin’s illegal war in Ukraine, which has affected consumers up and down the country and businesses of all sizes.
“The help we are already putting in place will save families money off their bills, and the Government’s plans for businesses, charities and public sector organisations will give them the equivalent level of support.
“This, alongside the measures we are taking to boost the amount of domestic energy we produce to improve both energy security and supply, will increase growth, protect jobs and support families with their cost of living this winter.”
The move was welcomed by Kate Nicholls, CEO of UKHospitality, who said: “This intervention is unprecedented and it is extremely welcome that Government has listened to hospitality businesses facing an uncertain winter. We particularly welcome its inclusiveness – from the smallest companies to the largest – all of which combine to provide a huge number of jobs, which are now much more secure.”
The Government has recognised the vulnerability of hospitality as a sector, and we will continue to work with the Government, to ensure that there is no cliff edge when these measures fall away.”