Energy bills help government-announced businesses - and they've been reduced
A package that was worth £18 billion in six months will now be reduced to just £5.5 billion over a year; april
A woman wearing a mask walks past an empty shop that is for rent in Burslam last year
The government has announced a reduction in the level of support to businesses for their energy bills from April.
Chancellor Jeremy Hunt said his new scheme to reduce energy bills would give businesses and others "the certainty they need to plan ahead".
But the reduced level of aid - branded 'criminal' by Labor - threatens to leave many businesses facing an astronomical bill.
Martin McTague, national president of the Federation of Small Businesses, called the new program a “huge disappointment.”
He added: "Many small businesses will not be able to survive on the pennies provided by the new version of the program.
"It's so disconnected."
The current government program caps the unit cost of gas and electricity for all businesses and expires at the end of March.
The Treasury said this "unprecedented assistance package" for non-domestic users throughout this winter was worth £18 billion.
It will be replaced by a new program that offers a discount on wholesale prices until March 31, 2024.
Picture:
Getty Images)According to the Treasury, this will cap the cost at £5.5 billion.
He said: "The new regime therefore strikes a balance between supporting businesses over the next 12 months and limiting taxpayers' exposure to volatility in energy markets."
Eligible non-domestic customers - including businesses, charities and the public sector - who have a contract with an approved energy supplier will see a unit discount of up to £6.97 per megawatt hour automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefiting from lower energy prices.
A "substantially higher" level of support will be provided to companies in sectors identified as being the most energy...
A package that was worth £18 billion in six months will now be reduced to just £5.5 billion over a year; april
A woman wearing a mask walks past an empty shop that is for rent in Burslam last year
The government has announced a reduction in the level of support to businesses for their energy bills from April.
Chancellor Jeremy Hunt said his new scheme to reduce energy bills would give businesses and others "the certainty they need to plan ahead".
But the reduced level of aid - branded 'criminal' by Labor - threatens to leave many businesses facing an astronomical bill.
Martin McTague, national president of the Federation of Small Businesses, called the new program a “huge disappointment.”
He added: "Many small businesses will not be able to survive on the pennies provided by the new version of the program.
"It's so disconnected."
The current government program caps the unit cost of gas and electricity for all businesses and expires at the end of March.
The Treasury said this "unprecedented assistance package" for non-domestic users throughout this winter was worth £18 billion.
It will be replaced by a new program that offers a discount on wholesale prices until March 31, 2024.
Picture:
Getty Images)According to the Treasury, this will cap the cost at £5.5 billion.
He said: "The new regime therefore strikes a balance between supporting businesses over the next 12 months and limiting taxpayers' exposure to volatility in energy markets."
Eligible non-domestic customers - including businesses, charities and the public sector - who have a contract with an approved energy supplier will see a unit discount of up to £6.97 per megawatt hour automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefiting from lower energy prices.
A "substantially higher" level of support will be provided to companies in sectors identified as being the most energy...
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