Richard warns schools and high streets are at risk due to planned cuts to energy support

Liberal Democrat MP for Tiverton & Honiton Richard Foord has warned that the Government’s plan to dramatically reduce support for local businesses and schools from the beginning of April will see many facing ‘an insurmountable’ rise in bills. 

The existing energy support scheme, which began in October 2022, capped the unit cost of gas and electricity for all businesses until the end of March.  

Under the programme, the Treasury funded a discount on the energy bills of businesses and schools by covering the difference between wholesale prices and a “government-supported price”. 

However, under plans announced on 9 January by the Treasury, this support will be drastically curtailed from April – falling from £18bn of support across six months to just £5.5bn over the next twelve months. 

Under the scheme, schools and businesses will be offered a ‘discount’ on their bills, instead of having a guaranteed cost of electricity and gas secured by the Government, with this new support being described as ‘transitional’. 

Richard Foord MP has warned that this dramatic scaling back of support will hit local schools and businesses hard, as many have already been struggling to remain ‘in the black’ with the current level of support. 

Commenting Richard Foord MP said: 

“I’ve spoken to a number of businesses and schools across our part of Devon who are seriously worried about what might happen when April comes around and their support is cut. 

“So many people are already struggling to make ends meet and are now left with an insurmountable rise in their bills just months away as support is pulled away before energy prices come down substantially. 

“This proposal will leave many local businesses with little choice but to shut up shop.  It risks leaving our town centres as little more than ghost towns. We need to be helping businesses get through until the summer, when energy costs are predicted to fall. 

“The removal of substantial support will also be felt by our schools, particularly our smaller village schools - which often bear the brunt of these decisions due to their smaller budgets and number of pupils.  Some schools have been protected to date by fixed rate tariffs but are seeing enormous rises in the amount of their budgets that must be put aside for energy.   

“I am urging the Treasury to rethink these damaging proposals and instead come forward with a longer-term plan to strengthen our communities, support our schools, and help local high streets thrive.”