Energy Relief to Be Reduced in April

Energy Relief to Be Reduced in April

Under the Energy Bill Relief Scheme (EBRS), non-domestic energy consumers receive relief on their energy bills. This followed rising prices throughout 2022, due – in part – to the ongoing conflict in Ukraine. The government has now announced that from 1st April, it will be replaced by the new Energy Bills Discount Scheme (EBDS). While the EBRS was funded to £18 billion over 6 months, the EBDS budget is just £5 billion over an entire year.  As this will reduce the amount of support available, concerns have been raised by sectors affected, including non-domestic childcare providers, who are already struggling to make ends meet. 

Responding to criticism, the government has said that the EBRS was always intended to be a temporary measure to serve as a bridge while businesses adapt. However, for childcare settings already running at maximum efficiency, higher energy bills could exacerbate their existing financial instability. It is true that gas wholesale prices have reduced to levels more akin to those seen before Russia’s invasion of Ukraine, however, it is not clear when these fluctuations will begin to benefit consumers. Prices also remain higher than they had been in previous years.

According to research by the Early Years Alliance, seven in ten providers may be forced to increase their fees due to the rising costs of energy. With the price of childcare already a serious contributor to inflation, many see the case for government intervention to be higher than ever. Although neither the Treasury nor Downing Street seem to be ready to increase funding, MPs across Parliament are starting to make the case. Writing for the Conservative Home website, Tory MP and Chair of the All-Party Parliamentary Group for Childcare and Early Education, Steve Brine argues: 

“Unless early education and childcare are funded properly, the country will continue to fall behind our OECD counterparts, creating an in-built disadvantage for our future growth ambitions. There is an economic imperative to tackle this now.”