Local authority leaders ‘remain deeply concerned’ about the impact of high energy prices on council services despite the Government’s announcement of a new Energy Bills Discount Scheme.

The new scheme, which will be capped at £5.5bn, will provide eligible businesses, charities, and the public sector with discounts on high energy bills until 31 March 2024.

The previous scheme provided a package of support for non-domestic users through the winter, worth £18bn.

The Chancellor of the Exchequer, Jeremy Hunt, said: ‘My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.

‘Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.’

From 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefitting from lower energy prices.

This will be subject to a wholesale price threshold, according to the Government, set with reference to the support provided for domestic consumers, of £107/MWh for gas and £302/MWh for electricity. This means that businesses experiencing energy costs below this level will not receive support.

Responding to the announcement, Cllr David Renard, energy spokesman for the Local Government Association (LGA), said: ‘While it is good the Government will continue to help the public sector as well as businesses keep their energy bills lower and provided some certainty for the next 12 months, we remain deeply concerned about the risk to some council services.

‘Libraries and museums will be eligible for extra support, as energy-intensive industries, but leisure centres and swimming pools will not be equally protected from high energy prices.

‘These valuable public facilities are at risk of reduced hours or even closure due to unsustainable and increasing costs.’

‘If the Government is serious about reducing pressure on the NHS, as well as meeting its other targets on physical activity and sports participation, it must continue to support our leisure centres and public swimming pools which help people stay active, healthy and out of hospital,’ Cllr Renard continued.

‘Councils need support with their energy bills for all their local services, so they can stay open and provide a safe haven for residents during this unprecedented cost of living crisis.’