UK expands energy bill support scheme for businesses amid rising costs

The UK government has announced an expansion of the British Industrial Competitiveness Scheme (BICS) to support more energy-intensive businesses with their energy bills.

The scheme, initially designed to help 7,000 firms, will now cover around 10,000 companies from April 2027.

Eligible businesses, including those in sectors such as steel, pharmaceuticals, automotive, aerospace, and recycling, could see their energy bills cut by up to 25%.

The support will exempt these firms from certain electricity levies related to the net zero transition.

The government also confirmed that payments will be backdated to April 2026, with a one-off payment in 2027 covering the support firms would have received since then.

The scheme is funded through changes to the energy system and government expenditure, with no impact on domestic energy bills.

This expansion comes in response to rising oil and gas prices triggered by the conflict in the Middle East, which has increased costs for energy-intensive industries.

The government stated that the move aims to strengthen Britain's economic security and competitiveness.

Business groups welcomed the expansion.

The Confederation of British Industry's chief executive described it as a significant step, while the manufacturers' body acknowledged the government's recognition of high industrial energy costs.

However, some critics have expressed concerns that the scheme does not go far enough.

The Conservative Party highlighted that sectors such as pubs, restaurants, farmers, and retailers, which are also under financial pressure, are excluded from the support.

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