Council chiefs have welcomed a new relief scheme to help businesses and public sector organisations cope with the rising cost of energy, but argue that further support will be needed.

Business Secretary Jacob Rees-Mogg today unveiled the Energy Bill Relief Scheme, which will provide a discount on wholesale gas and electricity prices for all non-domestic customers including councils.

The scheme will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will run from 1 October 2022 to 31 March 2023.

Cllr Andrew Western, chair of the Resources Board at the Local Government Association (LGA), described it as ‘a positive step’.

‘The inclusion of councils in the Government’s six-month energy price guarantee announced today is a positive step which should help mitigate against some of the extra costs councils face this year as a result of spiralling energy costs,’ said Cllr Western.

‘Alongside energy bills, councils are also facing massive increases in costs due to spiralling inflation and National Living Wage increases both this year and in future years. This is forcing councils to reset budgets leading to cuts to local services just to meet their legal duty to balance the books.

‘Further government support will be needed by councils and residents to cope with these ongoing pressures and to protect the services that our communities rely on every day and will be vital to help residents cope through the cost-of-living crisis.’

UNISON general secretary Christina McAnea said the relief package was ‘too little, too late’.

‘Many schools, care homes, councils and hospitals have already had to make tough decisions, selling properties or cutting staff to afford their energy bills,’ she said.

‘All this could have been avoided. Better management of the UK’s energy market and an ambitious programme to make public buildings, businesses and homes energy efficient would have made the world of difference.’