The government has announced a £420 million reduction in energy bills for some of the country's most energy-intensive businesses, including those in the steel, glass, and cement industries. Speaking to the BBC, Business Secretary Peter Kyle explained that around 500 companies will benefit from a 90% discount on their electricity network charges, up from the previous 60% discount. However, Unite's secretary general Sharon Graham expressed concerns, stating that the savings would be "quite small" and that energy providers' profits were "obscene".

The announcement comes less than a month before the Budget, as the government faces questions about how to stimulate economic growth while maintaining its commitments on employment rights. Last year, the UK had the highest energy costs among the G7 group of developed nations, with industrial energy costs nearly double the average across the International Energy Agency's member countries.

At Encirc Glass in Chester, Peter Kyle said the funding aims to "level the playing field" with international competitors, and that the bill reduction will be financed through existing government tax revenue. "The savings we have made for it, we have targeted to make businesses like this more competitive, so therefore creating more jobs, more wealth, more revenue for our country," he stated.

The scheme applies across England, Wales, and Scotland, and will benefit companies such as Tata Steel in Port Talbot and INEOS in Grangemouth. The 90% reduction in network costs, which make up around 20% of a company's energy bill, translates to an 18% overall energy bill reduction.

Reacting to the news, UK Steel welcomed the increased compensation, but noted that it would only mean a £14 million cut for the struggling industry, and that firms would not see the benefit until 2027. "It is frustrating that the steel industry must face yet another year of uncompetitive electricity prices," said UK Steel's director general, Gareth Stace.

Speaking at Unite's headquarters in London, Sharon Graham criticized the energy sector's profitability, stating that research found £30 billion in profits were made in 2024, while industrial energy bills are made up of about 29% energy company profits. She also noted that roughly a third of household energy bills, around £500, goes towards energy company profits, and urged the government to nationalize the industry.

While the energy bill relief will provide some respite for heavy industry, there are broader concerns in the business community about the impact of the Employment Rights Bill, one of Labour's flagship policies. The bill, which is currently making its way through Parliament, would grant workers certain rights from their first day of employment, including protection against unfair dismissal and the right to guaranteed hours. Businesses argue that this could make hiring riskier.

Peter Kyle stated that he does not see improved worker rights as being "in contention with" business interests, and said the legislation would be implemented in a way that contributes to businesses' ability to generate profits by increasing productivity and providing workers with security and rights suited to the modern era. However, he acknowledged that he is "listening very closely" to employers and workers to ensure the right balance is struck, including through a probationary period.

For Sharon Graham, the Employment Rights Bill as it stands is "a burnt out shell" with "more holes than Swiss cheese." She criticized the bill's provisions, particularly around the ability of employers to claim financial difficulty as a justification for firing and rehiring workers.