The UK government has expanded its British Industrial Competitiveness Scheme (BICS) to help more manufacturers with their energy bills. The scheme, which will start in April 2027, aims to cut electricity costs by up to 25% for around 10,000 energy-intensive firms in sectors such as steel and pharmaceuticals.
Key Takeaways
The UK government has expanded its British Industrial Competitiveness Scheme (BICS) to support 10,000 manufacturers by cutting their electricity bills. The scheme will begin in April 2027 and offer up to 25% reductions for eligible firms.
- BICS now includes an additional 3,000 companies
- Eligible firms can claim backdated payments starting from next year
- Critics argue the support is insufficient and delayed
According to The Guardian, the expanded BICS includes an additional 3,000 companies compared to its original target of supporting 7,000 firms. The scheme will exempt qualifying businesses from certain electricity charges that finance the net zero transition, worth around £35–£40 per MWh.
The government stated that the move is a response to high energy costs and global instability, which have put significant pressure on UK manufacturers. Business Secretary Peter Kyle emphasized the importance of supporting businesses to ensure Britain's economic resilience.
However, critics argue that the support does not go far enough. The Guardian reported that Gary Smith, general secretary of the GMB union, criticized the government for ignoring gas-intensive industries like ceramics and brickmaking. The Confederation of British Industry (CBI) welcomed the expansion but noted that more needs to be done to address high energy costs.
Sky News highlighted concerns from manufacturers who are facing immediate cost pressures due to surging energy prices caused by the conflict in Iran. Stephen Phipson, chief executive of Make UK, stated that many companies cannot wait until 2027 for relief and warned of potential job losses if help is not provided sooner.
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