Treasury postpones energy support announcement until New Year

The Treasury has postponed an announcement on the continuation of energy support for businesses beyond March 2023 until the New Year.

An update on the level of support that would be provided beyond the initial six-month period had been expected before Christmas.

At the time of Jeremy Hunt’s autumn statement last month documents on the Treasury website had suggested that some support would remain for hard-hit businesses beyond March 2023, but the overall scale of help offered by the government will be lower than suggested under Liz Truss’ government.

Kate Nicholls, chief executive of UKHospitality, said the delay was “disappointing”.

She added: “Businesses are facing daily changing rates and contract decisions in January, so certainty was really needed.

“We urge OFGEM to continue to keep pressure on energy suppliers to deal fairly with commercial customers and bear down on continuing poor practices and onerous terms and conditions.”

Confirming the delay, a Treasury spokesperson said: “We are protecting businesses from high energy costs this winter, caused by [Russian President Vladimir] Putin’s invasion of Ukraine, through the six-month £18b Energy Bill Relief Scheme.

“However, this is very expensive, and we need to ensure longer-term affordability and value for money for the taxpayer.

"That is why we are currently carrying out a review with the aim of reducing the public finances’ exposure to volatile international energy prices from April 2023.

"We will announce the outcome of this review in the New Year to ensure businesses have sufficient certainty about future support before the current scheme ends in March 2023.”