The government has confirmed that support for businesses with their energy bills will be reduced from April.

Businesses currently have their costs capped; from April, this will change instead to discounts on wholesale prices, which will benefit those whose electricity and gas bills are high.

James Cartlidge, the exchequer secretary to the Treasury, explained that this was around a £2,300 saving for a pub.

The new scheme will run until the end of March 2024, with a cap set on it to limit how much taxpayers are subsidising spiralling costs.

Bills will automatically be discounted by up to £6.97 per (MWh) for gas bills and up to £19.61 per MWh for electricity bills, a statement read.

Although wholesale gas prices are below the level they were before Russia’s invasion of Ukraine, they are still three to four times higher than their long-term average.

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