Energy bill support for businesses will reduce in April
By Rachel Lawler
The government has that the amount of support given to businesses to help with energy costs will reduce in April 2023.
Under the new scheme business customers will get a discount on wholesale prices of energy. This is a reduction of the current support scheme, which caps the cost at a lower price.
Some sectors that use a high amount of energy, such as manufacturers, will receive a 鈥渟ubstantially higher level of support鈥 but there is no targeted support for early years providers.
Scaled back support
Neil Leitch, CEO of the Alliance, commented: "While the continuation of some energy support is better than nothing, the harsh reality is that the level of support announced today is unlikely to do much, if anything, to improve the current situation, especially given that the rising cost of energy is only one of a myriad of challenges affecting early years settings.
"With providers also facing severe staffing shortages, record increases in the national minimum and level wage and wider inflationary pressures, it is clear that urgent action is needed to prevent the collapse of our vital sector.
"As such, it is absolutely vital that the government commits to the investment and financial support needed to safeguard the future of the early years. Ministers have dragged their feet for long enough."
Support for childminders
The government has also not announced any targeted support for home-based businesses, such as childminding professionals, who will be domestic energy customers.
Neil commented: 鈥淲e know that many childminders are having to take extreme action, such as not heating their own homes in the evenings and weekends to ensure that children attending their settings can remain warm during the week, as the result of soaring energy bills.
鈥淭he fact that childminders work out of their homes does not change the fact that they are businesses. As such, it is vital that they are given additional support to ensure they can cope the rising cost of energy. Anything less would be incredibly short-sighted, especially given the government鈥檚 current efforts to increase the number of childminding professionals operating in the sector.
鈥淎ll too often, childminders are left at the bottom of the pile when it comes to government policy. We urge the government to ensure that these vital businesses are able to access the energy support they so desperately need.鈥