Energy Bill Relief Ends—Small Businesses Brace for Rising Costs

Energy Bills Discount Scheme Says Goodbye This March

On March 31, the Energy Bills Discount Scheme drops the curtain, and—spoiler alert—no one’s lining up a sequel.

Why the Rule‑book Was Written

Created to cushion businesses from the crushing energy cost spike.
But a recent survey by Simply Business found that more than a quarter of SMEs were paying up to 40 % more for energy than the year before.
Come the Spring Budget, SMEs were hoping for a “renewal” and some government backing to set them up for success.
Instead, they’re left on the sidelines, feeling the chill—especially those who buy energy from non‑domestic users.

What Owners Are Saying

Micky Whiteman, RD1 Clothing

“The relief was a lifesaver right after launch, but it’s only one piece of the puzzle. The cost‑of‑living rabbit out of the park is pushing our customers they’re paying more, and suppliers are hiking prices too. If the government doesn’t keep the plug in, we’ll see fewer startups and a handful of existing shops clutching their gates shut.”

But he’s still running the lights off

“We’ll still need our electricity to keep alarms, tills, lights, and heating humming. No ruby slippers to shrink that. The bill’s been 40 % higher than when we opened in early 2022, even with the discount. We’ve had to slash staff, squeeze product costs, and we’re not sure how long that will last with suppliers’ price hikes.”

Daniele Paduano, Kotch! Pizza Stratford

“There was a time I was owed £1,800 by an energy company after closing the account. I only found out months later when I dove into my online account. No one even bothered to reach out for the refund—I had to chase it myself.”

“To stay out of debt, especially when every penny counts toward paying staff and keeping the family afloat, I cut the direct debit and latch it on again when the credit runs out. It’s quick.”

“If you’re a small business owner, check your account regularly, rack a smart meter, and make a habit of looking every six months. Prices can drop; negotiate the deal. It keeps your cash flow healthy—now, bills aren’t pennies like pre‑war times.”

Bea Montoya, COO of Simply Business

“With the scheme winding down, the money crunch for SMEs is intensifying. In our research, 46 % of SMEs with more than ten staff said the energy crisis hit supply chains, while 36 % trimmed services or hours to fight the rising costs. We’re operating on a recession backdrop with dwindling government support, so we must step up to keep the backbone of the UK economy firm.”

“High energy prices are a top hurdle. Over a quarter of SMEs spent 40 % more energy last year. Without an extension of the discount scheme, many businesses won’t survive.”

What’s Next?

Small business owners across the country are gearing up for a roller‑coaster of uncertainty. With the official safety net gone, they’re planning ahead: exploring new contracts, monitoring consumption, and battling cost hikes that demand every part of their workforce to stay in the game.