Important new energy support for industry must be expanded

These are material improvements. At a time of persistently high energy costs, now further intensified by Trump’s illegal war on Iran, they will help protect thousands of jobs across UK industry. 

But a critical question remains at the heart of the scheme’s success or failure in the eyes of unions: who will actually qualify for support?  

Manufacturing industries are the backbone of communities across the country, it’s crucial that support on energy reaches them.  

BICS must include all foundational industries 

BICS was positioned as a cornerstone of the government’s Industrial Strategy, aimed at reducing electricity costs for manufacturers, including both high-growth “frontier” sectors like automotive and aerospace, and “foundational” industries such as steel and chemicals. It is right that the government takes these steps.  

However, as details have been developed, concerns amongst unions have grown that eligibility may be drawn too narrowly. While precise eligibility has not yet been finalised, it seems that government is currently intending to limit it only to these high-growth industries and those parts of foundational industries that directly supply them, while excluding large parts of the wider manufacturing base.  

That would be a serious mistake. 

Many industries that fall outside these categories are vital to local economies and employment in regions across the UK. Potteries, brickworks, fertiliser plants and glass manufacturers may not always sit neatly within “frontier” supply chains, but they underpin jobs, communities - as well as industrial resilience and economic security for the country. 

The ceramics sector is a clear example. It has repeatedly fallen through the gaps of previous support schemes, and we are now seeing the consequences. Denby, the historic British tableware company founded in 1809 when George II was on the throne, is at risk due to energy costs, putting nearly 600 jobs on the line. 

The risk extends to the most innovative and groundbreaking parts of these sectors. Even the cutting-edge Wienerberger site at Broomfleet near Hull - set to become Europe’s first fully electrified large-scale tileworks later this year, and essential to decarbonising our homes - would not qualify for electricity support under a narrow interpretation of BICS.  

Jobs at these sites, and many others like them that currently risk losing out, are just as important as jobs supporting ‘high growth’ sectors. 

A scheme designed to support industrial competitiveness should not exclude foundation industries – especially those looking to decarbonise and to invest in the future.  

More support is needed beyond BICS 

While BICS focuses on electricity, many manufacturers are also heavily exposed to natural gas prices. For sectors like ceramics and glass, gas can account for the majority of energy use. In chemicals, gas and its derivatives are often a core input. These industries are being hit doubly hard by the current energy crisis. 

We are also therefore calling Government to introduce a temporary, targeted gas price cap for the most exposed sectors - those where gas accounts for the majority of energy demand or raw materials. This would provide immediate stability where it is most needed.  

At the same time, this crisis underlines the need for structural reform to our industries and energy markets. We must reduce our exposure to volatile international gas markets by accelerating government investment in industrial decarbonisation and energy efficiency, as currently industry lacks any support on capital costs for decarbonisation. We must also address the structural issue of electricity pricing, by de-linking electricity prices from gas prices. 

These changes are achievable, and essential. 

This welcome step forward must now be turbo charged. 

BICS is a welcome step forward. But its impact will depend on whether it reaches the full breadth of UK industry. Getting that right is critical, not just for competitiveness, but for the jobs and communities that depend on it. This announcement cannot be the end of the story on energy support.  

We cannot let workers pay for Trump’s illegal war.