Is there government help for small business energy bills in 2026?

The short picture

The last across-the-board support, the Energy Bills Discount Scheme, closed on 31 March 2024. We have not found a replacement open to ordinary shops, cafés, offices or tradespeople in 2026, and there is no Ofgem price cap on business energy. Anything that claims otherwise should be checked on GOV.UK.

What does exist

Targeted industry schemes

The British Industry Supercharger raises network charge discounts for about 500 energy-intensive firms, such as steel, ceramics and glass. The British Industrial Competitiveness Scheme (BICS) is for manufacturers in eligible sectors: applications opened on 1 October 2026 and close on 30 November 2026, with levy exemptions from 2027. Most small businesses will not qualify; see who qualifies for BICS.

VAT

From 1 October 2026 to 30 June 2027, qualifying domestic and charity non-business electricity in Great Britain is at 0% VAT. HMRC first set the end date as 31 March 2027; Budget 2026 extended it. Business use stays at 20%. Our zero VAT guide explains who is covered. The reduced 5% rate also still applies to small amounts: up to 1,000 kWh of electricity or 4,397 kWh of gas a month at a premises.

Budget 2026

The Budget on 28 October 2026 added no general energy bill support for small firms. Its measures for smaller businesses were mainly on business rates, such as a higher Small Business Rates Relief threshold in England.

Your supplier

If you are struggling to pay, ask about a payment plan. Ofgem also says suppliers must signpost microbusinesses to Citizens Advice.

Efficiency support

Some councils and regional bodies have run efficiency grant or loan programmes, but they open and close often and vary by area, so check your council and local growth hub. See grants for efficiency.

Reduce the bill yourself

Worked example: a café uses 30,000 kWh of electricity a year at 27p/kWh, so £8,100 before standing charge and VAT. Cutting use by 10% through lighting, equipment and timers saves 3,000 kWh, or £810 a year. Moving to a rate 2p/kWh lower saves 30,000 × £0.02 = £600. Both are worth doing together.

Check whether you are on a deemed or out-of-contract rate. Those are often far higher than fixed deals and are the quickest saving; see how to get off them.

Watch for scams

Be wary of cold calls promising grants or refunds you must claim through a third party. See why you get cold calls.

How to check a claim

Official support is announced on GOV.UK, and you will usually be told how to claim through your supplier rather than through a call from an unknown company. If someone says you qualify for a payment, ask for the scheme's official name and look it up yourself on a .gov.uk page before sharing any information. Never hand over bank details or sign a letter of authority on the strength of a cold call.

Next steps

1. Read our full guide to government help.
2. Compare prices: compare business energy.
3. Cut use: saving energy.

Biz Energy is independent and not affiliated with any supplier, broker or comparison site, and takes no commission. This is general information, not legal, tax or financial advice.