Care leaders have welcomed the government’s announcement yesterday of a cut to energy bills for businesses.

The Government Energy Bill Relief Scheme unveiled by Business Secretary Jacob Rees-Mogg will  provide a discount on wholesale gas and electricity prices for all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals, which is equivalent to the Energy Price Guarantee put in place for households.

It 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 apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users.

Prime Minister Liz Truss said: “I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.

“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.

“At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”

Nadra Ahmed OBE, executive chairman of the National Care Association, said: “It is a huge relief to see that government is acting to support small businesses and I suspect the devil will be in the detail. If caps are introduced in line with domestic support for care homes it will make a huge difference.

“Our services are domestic households as well as small businesses so the balance will make all the difference. The tension of the support being time limited will no doubt remain a cause of concern but we understand there will be regular reviews until we are able to reach a more stable economic period. We remain keen to work with government to create sustainable solutions.”

Professor Martin Green, chief executive of Care England, added: “The measures announced by the government with be of help to care services struggling with enormous energy costs. Care England welcomes this support and is anxious to work with the government on a long-term energy strategy for the care sector.”