In late May, the former Chancellor announced new measures to counter the rising cost of living, in particular energy prices.
On May 26th, Rishi Sunak revealed further cost-of-living measures that will be funded by a new temporary Energy Profits Levy on oil and gas company profits of 25%. This brings the total tax rate payable by these companies to 65% and raising £5 billion in its first year. The levy will be phased out if oil and gas prices return to “historically more normal levels”. Also, ending by the start of 2026.
The reduction provided under the Energy Bills Support Scheme will increase by £200 to £400 and turn into a grant, not a loan. Therefore, there will be no clawback from future bills. There will also be a number of other measures aimed to help those on means-tested benefits, those eligible for the Winter Fuel Payment (WFP), people on disability benefits, and pensioners.
What can you do?
The increasing cost of energy is affecting households and businesses alike, but there are some things we can all do to help ease the pressure. Ofgem has some great tips here about how to manage the rising costs for your business (and even at home):
- Make sure you have a smart meter installed (at home and on your business premises)
- Check with your energy provider to see what support they can offer you
- See what business or government grants are available to help your business
- Improve your business’s energy efficiency
- Look at reducing your carbon emissions
- Consider switching energy suppliers to get a better deal
How can we help you?
Ultimately, if you are struggling, do get in touch as there could be other ways, we can help you to better manage and plan, budget, and forecast for your business. Get in touch by email or call us on 01273 963656 or 01444 716946.
