Small Businesses in Leicestershire Are Struggling With Rising Energy Bills
Small businesses in Leicestershire are particularly affected by the increase in energy bills. One family run farm shop in North Yorkshire is set to face a bill that more than doubles from £20,000 to £76,000 if they do not switch their energy supplier. When Lily Beaton received the first bill, she realised that she would be operating at a loss if she could not pass on the cost rises to customers.
Small businesses hit hardest by rises in energy prices
Increasing energy costs are one of the biggest problems facing small businesses across the UK. The Chancellor has promised to help tackle the problem by providing £200 rebates to households. However, these rebates have not reached the businesses directly, meaning many are left struggling. Small businesses are being forced to close as a result of increased costs.
Small businesses in Leicestershire are hit hard by the rising costs of energy, particularly natural gas and electricity. These bills can reach over £1,000, which is about £1,200. Many companies are finding it hard to cope with the costs, which can easily push them into bankruptcy.
Despite the rise in energy prices, many small businesses have reported that their energy costs have already surpassed their mortgage repayments. The FSB has called on the government to make the necessary allocations to reduce the cost of energy.
Home energy grant can reduce energy bills
The Home energy grant is an opportunity to make your home more energy efficient. This funding can cover the cost of wall and loft insulation. By doing this, you can reduce your energy costs and help tackle climate change. Leicestershire County Council, in conjunction with district councils, is offering this funding. This scheme is designed to help homeowners and businesses in Leicestershire prepare for winter by reducing their energy bills.
The scheme is worth £1 billion over three years. Its focus is on supporting the most vulnerable households by giving them money to make their homes more energy efficient. The scheme is also available to private tenants, although landlords must contribute at least one third of the costs.
Leicestershire County Council has partnered with E.ON to provide this funding, with the help of Trustmark registered contractors. It is important to note that no work should be carried out without written confirmation of the grant.
Green levies on bills make up higher proportion of bills than VAT
As of today, green levies on energy bills make up more than 8% of the total bill. By comparison, social policy costs make up just 3% of the bill. The levies are mainly used to fund various renewable energy policies. In addition, the levies also help tackle fuel poverty. These levies are capped by law and will eventually be cut to less than 3% of the total bill.
MPs must make sure that the money allocated to green measures is used effectively. This means weighing up a range of measures against their cost to the taxpayer. It is clear that green levies on energy bills represent a higher proportion of bills than VAT. But the Government must make sure that they do so in a way that does not impact on gas-dependent households.
While household energy bills have been comparatively stable over the past half century, they have seen two major spikes, one in the early 2000s and one in the early 2010s. In the latter case, the government's energy policies had only just begun to take effect. But by the end of the year, household energy bills would be around 50% higher than predicted when the government introduced its policies in May. And that is before considering the effect of climate policy rollbacks.
Government needs to maintain energy price cap
The energy price cap, which has been in place for six months, is a welcome development. It will protect UK businesses from the high cost of energy. However, a price cap alone will not help everyone. The cost of energy is increasing at a rapid rate and will eventually reach £1,200 for the average household. The cap was introduced to protect consumers who aren't on a fixed contract, and will help ensure that people pay the fair retail market price for energy. Ultimately, this should reduce bills as energy suppliers' costs drop.
The price cap only protects consumers from high energy bills, but it doesn't apply upstream where energy is produced. Moreover, the cap does not apply to fossil fuel traders who gain huge profits from high prices. This means that the price cap does not help small businesses, who have the least amount of money to spend.