The Government will cut network charges for the UK’s most energy-intensive firms, trimming £420 million from bills from next year. Unite’s Sharon Graham welcomed the help but called the savings “quite small” given “obscene” profits.
The move lands weeks before the Budget, as ministers balance growth with employment rights. The UK had the highest energy costs in the G7 last year.
The scheme spans England, Wales and Scotland. Likely beneficiaries include Tata Steel and INEOS. The cut targets network charges, which account for about 20% of a typical bill, so a 90% reduction equates to an 18% decrease.
Reaction is mixed. UK Steel welcomed the uplift, yet expects around £14m in sector savings, which will be paid in arrears from 2027. Gareth Stace, director general at UK Steel, said firms face uncompetitive prices.
Unite research claims that the energy sector made a £30 billion profit in 2024 and estimates that profits make up 29% of industrial bills. It states that a third of the household bill, approximately £500, goes to supplier profits. Graham urged nationalisation, which critics say would be costly. She rejected comparisons with Liz Truss, arguing the problem was unfunded tax cuts without OBR scrutiny.
Meanwhile, Labour’s employment rights bill is advancing. It would grant day-one rights, including unfair dismissal protection and guaranteed hours. Businesses warn that this could deter hiring: the Federation of Small Businesses says nine in ten are concerned, and two-thirds would recruit fewer people. The Resolution Foundation also warns of hiring risks with limited gains for workers.
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