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  "path": "/money/labour-energy-bill-hikes-manufacturing-support-package",
  "publishedAt": "2026-03-08T09:19:36.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "Ofgem confirms chief executive to step down ahead of energy price cap change",
    "Energy suppliers pull fixed deals as Middle East conflict drives prices higher",
    "Octopus Energy under fire as 'sickening' exit fees raised from £0 to £75 'all in one week'",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nLabour is preparing plans which may increase energy bills for households and businesses to help finance a £1billion support package for the struggling manufacturing sector.\n\nOfficials at the Department for Business and Trade have held discussions with energy suppliers in recent weeks regarding the rollout of the British Industrial Competitiveness Scheme, which Sir Keir Starmer unveiled last year as a central pillar of Labour’s industrial strategy.\n\n###\n\n\n\n\nSources with knowledge of the negotiations have indicated there is a \"working assumption\" the scheme will be funded through charges passed directly to consumers via their energy bills.\n\nSuch an approach would contradict previous Labour assurances that the funding would instead come from savings made elsewhere within the energy system.\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nThe British Industrial Competitiveness Scheme is expected to provide support to approximately 7,000 energy-intensive businesses across the UK.\n\nCompanies expected to benefit include manufacturers operating in sectors such as automotive production, aerospace engineering and chemical manufacturing.\n\nUnder the proposals, these businesses would see their discount on electricity network charges rise significantly from 60 per cent to 90 per cent.\n\nQualifying firms would also be exempt from paying several energy levies, including the renewables obligation, the feed-in tariff and capacity market charges.\n\nThe support package is being introduced at a time when British manufacturers face some of the highest industrial electricity prices in the developed world.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nIndustry groups have repeatedly warned high energy costs are placing considerable pressure on operations and investment across the sector.\n\nManufacturing body MakeUK has estimated the annual cost of the scheme will total approximately £1billion.\n\nSome of the funding is expected to come from reforms to subsidies currently paid to wind and solar farm operators.\n\nHowever, discussions between officials and suppliers suggest that additional costs could still be passed on to consumers through energy bills.\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * Ofgem confirms chief executive to step down ahead of energy price cap change\n  * Energy suppliers pull fixed deals as Middle East conflict drives prices higher\n  * Octopus Energy under fire as 'sickening' exit fees raised from £0 to £75 'all in one week'\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nEnergy industry representatives have raised concerns about the growing number of additional charges that have been attached to bills over recent years.\n\nThese so-called non-commodity costs now account for a significant portion of what households and businesses ultimately pay for energy.\n\nAdam Berman, head of policy at Energy UK, which represents suppliers, said: \"The Government has repeatedly offered assurances that the BICS scheme will not be funded through energy bills.\"\n\nHe added: \"There will be deep frustration in the sector if this is not the case, and that yet another levy is being added to energy bills pushing up costs for homes and businesses across the country.\"\n\n###\n\n\n\n\n###\n\n\n\n\nMr Berman said support for energy-intensive industries remains important but warned that it should not place additional pressure on other parts of the economy.\n\nThose familiar with the discussions have indicated the proposed levy could add a minimum of £5 per year to the energy bills of a typical household.\n\nSuch an increase would further reduce the £150 cut to bills that ministers had previously promised for the spring.\n\nThat reduction has already been scaled back to £117 following increases in electricity network charges.\n\n###\n\n\n\n\n###\n\n\n\n\nOne source close to the talks described the funding approach as \"raising Peter's levies to lower Paul's\", adding the proposal would coincide with expected increases in costs from generator and network companies.\n\nThe discussions come during a period of volatility in global energy markets following tensions involving Iran, which have contributed to rising oil and gas prices.\n\nAnalysts have suggested that average household energy bills could reach £2,500 per year if wholesale prices continue to climb.\n\nA Government spokesman declined to deny the claims when approached on Friday, adding further details about the scheme would be published in due course.\n\n###\n\n\n\n\n**Our Standards:The GB News Editorial Charter**",
  "title": "Labour to use energy bill hikes to fund £1billion manufacturing support package"
}