Government help with business energy bills: what exists in 2026

The straight answer

As of 6 November 2026 we found no general government scheme that reduces the energy bills of ordinary small businesses. The Energy Bills Discount Scheme closed on 31 March 2024, and nothing equivalent has replaced it. There is also no Ofgem price cap for business energy: Ofgem confirmed in April 2026 that customers on non-domestic contracts, including businesses and charities, are not protected by the cap (see business energy price cap). What remains is a set of narrower measures, plus ways to cut your own costs.

What used to exist, and why people still search for it

Two schemes ran after the 2022 price spike:

Scheme	Ran	What it did
Energy Bill Relief Scheme	1 Oct 2022 to 31 Mar 2023	Discount on the wholesale part of bills
Energy Bills Discount Scheme	1 Apr 2023 to 31 Mar 2024	Smaller per-unit discount on wholesale costs, with higher support for energy and trade intensive industries and heat networks

The second scheme ended on 31 March 2024 and GOV.UK withdrew its guidance on 10 April 2024. Its discounts only applied once wholesale prices passed set thresholds, so many firms received little or nothing in its final months. If you see websites or phone callers talking about "energy bill relief" for businesses today, treat them with caution. See what replaced the Energy Bill Relief Scheme.

Help that exists now

Reduced VAT for qualifying non-business use

VAT on business energy is 20%. A reduced rate of 5% applies to small amounts of use (up to 33 kWh a day of electricity, or 145 kWh a day of gas, per premises) and to supplies for domestic or charity non-business use. From 1 October 2026 to 30 June 2027, a temporary 0% VAT rate applies to qualifying electricity in Great Britain, but only for those same domestic and charity non-business uses. HMRC originally set the end date as 31 March 2027; Budget 2026 extended it by three months. Ordinary business use stays at 20%. Worked example on a £2,500 electricity bill (before VAT) for a village hall with qualifying charity use:

• At 20%: £2,500 × 0.20 = £500
• At 5%: £2,500 × 0.05 = £125
• At 0% (temporary): £0

If 60% or more of a supply is qualifying use, the whole supply is reduced-rated; below 60%, only the qualifying share is. See zero-rate VAT on electricity and the reduced-rate VAT declaration.

Climate Change Levy relief

The main CCL rate is 0.801p/kWh from 1 April 2026 and rises to 0.827p/kWh from 1 April 2027. GOV.UK's CCL exemptions guidance treats very small supplies as domestic and outside the levy (under 1,000 kWh a month of electricity or 4,397 kWh a month of piped gas), along with charity non-business use,, and some users with a Climate Change Agreement get reduced-rate discounts of 92% on electricity and 89% on gas. That mainly helps energy-intensive operators. See Climate Change Agreements.

Support for energy-intensive manufacturers

The British Industry Supercharger gives around 500 energy-intensive firms in sectors such as steel, ceramics and glass a discount on electricity network charges, raised from 60% to 90% from 2026. The British Industrial Competitiveness Scheme (BICS) is aimed at manufacturers in eligible sectors that meet a minimum electricity use: GOV.UK says applications opened on 1 October 2026 and close on 30 November 2026, with eligible firms exempted from the Renewables Obligation, Feed-in Tariff and Capacity Market costs from 2027, worth up to £40/MWh. Most small firms do not qualify. See energy-intensive industry support and who qualifies for BICS.

Help if you cannot pay

Suppliers must treat microbusinesses fairly, and Ofgem expects them to consider payment plans. Contact your supplier before you fall behind, and get free debt advice. See what to do if you cannot pay and payment plans.

What Budget 2026 changed

The Budget on 28 October 2026 did not introduce general help with business energy bills. The energy-related points were:

• VAT: the temporary zero rate on qualifying domestic and charity non-business electricity was extended to 30 June 2027. It still does not cover ordinary business use.
• BICS: the Treasury said the scheme will support over 10,000 eligible businesses in electricity-intensive sectors and their supply chains from April 2027, cutting their electricity bills by up to 25%.
• Business rates: not an energy measure, but relevant to the same overheads. The Treasury announced a higher Small Business Rates Relief threshold and real-terms protection for retail, hospitality and leisure properties in England. Scotland, Wales and Northern Ireland set their own rates.

Worked example: what the VAT extension is worth to a charity hall

A hall with qualifying charity use spends £2,500 a year on electricity before VAT, roughly £208.33 a month (2,500 ÷ 12). The extra three months at 0% instead of 5% save about £208.33 × 3 × 0.05 = £31.25. Useful, but small, and it does nothing for a shop or office paying 20%.

How to check whether you qualify for anything

1. Is any of your energy used for domestic purposes or charity non-business activity? If so, ask your supplier for its reduced-rate declaration.
2. Is your monthly use below the de minimis limits? Check a recent bill; if so, VAT should be 5% and CCL should not be charged.
3. Are you a manufacturer with high electricity use? Use the BICS eligibility checker on GOV.UK before the 30 November 2026 deadline.
4. Does your sector have a Climate Change Agreement? Ask your trade association.

What does most to cut your bill

With no subsidy, the levers are in your hands:

1. Never sit on out-of-contract rates. The average out-of-contract electricity price on a Moneysupermarket Business page dated 21 October 2026 was 40.0p/kWh plus 254.0p/day, versus 28.4p/kWh plus 58.0p/day for an average microbusiness fixed deal. At 20,000 kWh that is £8,927.10 against £5,891.70 (20,000 × 0.40 + 365 × 2.54, and 20,000 × 0.284 + 365 × 0.58), about £3,035 a year. These are indicative averages, not offers.
2. Shop around before each renewal. See when to switch.
3. Cut waste. See saving energy in a small business and efficiency grants and loans.
4. Check the tax lines on your bill with the VAT and CCL calculator.

For context: what the average business pays

DESNZ Quarterly Energy Prices (September 2026) gives the non-domestic average for April to June 2026 as 24.51p/kWh for electricity and 5.28p/kWh for gas, both including the Climate Change Levy. Your own rate may be quite different depending on size, region and contract date. Compare in business electricity prices per kWh.

Beware of scams: offers of grants, refunds or "government bill reductions" by phone or email for a fee are a red flag. Real help is on GOV.UK. Do not sign a letter of authority for someone you do not know (see is it safe to sign a letter of authority).

Next steps

• Check which VAT rate and CCL treatment your bill applies.
• Find out if you are on a fixed contract: find your end date.
• If you are struggling, speak to your supplier and to Citizens Advice now.