UK poised to slash business energy bill support by 85%

The new package, due to be revealed later this week, will reportedly cost £5 billion

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The government will reportedly cut energy bill support for businesses by 85% in a blow to millions of struggling firms.

As ministers scramble to minimise the cost of the current schemes in a bid to protect taxpayers’ money, the Prime Minister and the Chancellor have reportedly agreed to an overhaul of the government support in April.

This follows an £18 billion six-month package of aid for businesses that have seen their energy bills rise exponentially within the last year.

The government will reportedly announce a limited universal support scheme for businesses, prioritising additional help for energy-intensive industries, including steel, paper, glass, cement and ceramics.

ELN understands that the government business energy bill help for the following year will drop to about £5 billion.

A Treasury spokesperson told ELN: “We are protecting businesses from high energy costs this winter, caused by Putin’s invasion of Ukraine, through the six-month £18 billion Energy Bill Relief Scheme.

“However, this is very expensive and we need to ensure longer-term affordability and value for money for the taxpayer.

“That is why we are currently carrying out a review with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023.”