How the Energy Bills Discount Scheme affects the nail & beauty industry

The government has announced the introduction of the new ‘Energy Bills Discount Scheme’ for UK businesses, charities and the public sector, ahead of the current scheme ending in March.

The new scheme means that all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024.

From 1 April 2023 to 31 March 2024, all premises-based hair & beauty businesses, who are currently paying more than £107 per MWh for gas and £302 per MWh for electricity, will see a discount of up to £6.97/MWh automatically applied to their gas bill and a discount of up to £19.61/MWh applied to their electricity bill.

Customers do not need to apply for their discount. As with the current scheme, suppliers will automatically apply reductions to the bills of all eligible non-domestic customers.

“There can be no debate that businesses within the beauty industry are having a really difficult time at the moment with the price of energy, products, rents and supply chain costs and increasing significantly in 2022,” comments Victoria Brownlie, Chief Policy Officer at the British Beauty Council.

“Whilst we are grateful to receive some level of continued support post March, it is disappointing that the Government has not gone further at such a delicate time for our hair & beauty salons and retail businesses. We are continuing to push for discounts, grants and incentives across other areas of business. These include green grants and funding to implement energy efficiency measures, to help rebuild and future-proof the industry.”

“We are relieved that the Government has answered our call and that the hair & beauty sector will at least receive some support via the Energy Bills Discount Scheme. However, many will see the discount swallowed up in the first month or two of the energy price increases they are already facing,” adds Richard Lambert, NHBF chief executive.

“Energy costs are the first or second largest outgoing for most hair and beauty salons and barbershops and it remains to be seen whether this reduced support will help many keep the doors open and lights on beyond March 2023. Our sector is locked in a fight for survival through the cost of doing business crisis and with 20% of businesses saying that they are likely to downsize or close over the next few months, further support will be needed to ensure that this sector can continue to make its significant contribution to vibrant high streets and community wellbeing.”

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