Independent cafes and restaurants, heads up, there’s a new government scheme to help hospitality businesses reduce energy bills
In 2025, utility bills remain one of the biggest pressures facing small hospitality businesses.
By adopting energy-efficient measures, pubs, bars, cafes and restaurants can reduce their overall energy bill – this is what the scheme sets out to assist with.
The government estimates a £3m total saving across the industry, which won’t be a huge windfall. That said, support in the form of free audits and advice can be a potentially useful scheme to help businesses when margins are especially tight.
What is the new energy efficiency scheme?
As part of the government’s Plan for Change, which aims to make the UK “a clean energy superpower”, over 600 small and medium-sized hospitality businesses will be offered free expert advice and audits.
Via recommendations on how to cut both costs and carbon emissions, the scheme aims to save the sector £3m on energy bills and reduce carbon emissions by 2,700 tonnes.
The emissions-cutting scheme is funded by the government but delivered by Zero Carbon Services, one of the top net-zero advisers for the hospitality industry.
Being more energy-efficient is both better for the planet and your pocket. By switching to alternatives like induction hobs, LED lighting, or smart refrigeration systems, hospitality businesses can save on energy bills.
Regarding the scheme, Zero Carbon Services CEO, Mark Chapman, said “Most venues have opportunities to save energy, food and money without realising it.
“By combining smart data with one-to-one coaching, we help operators take simple, practical steps to reduce waste, lower emissions, and improve day-to-day efficiency. It’s about making small changes that add up.”
Why does this matter for small F&B brands?
Although energy bills have fallen since their peak during the energy crisis in 2022 and 2023, they remain volatile and unaffordable for many.
Official data shows that small restaurants and cafes faced average annual energy costs of £1,881 in late 2024; a drop from £2,307 in 2023, but still a sharp rise from £1,167 in 2020.
The government’s energy price cap has offered some relief, but current rates remain significantly higher than pre-energy crisis levels, leaving hospitality companies feeling pessimistic about the future.
Beyond bill trouble, hospitality businesses have also faced various other challenges in the past five years. Following rising business rates and employer NICs, staff shortages, and a drop in late-night footfall, some relief on energy costs will offer a much-needed boost.
Although £3m on a national scale doesn’t sound like it would spread far, the impact can be significant. Additionally, switching to energy-efficient measures can mean businesses become eligible for other energy-saving incentives, providing extra savings.
How can businesses access the scheme?
While energy efficiency is one way to reduce energy bills, many independent venues simply don’t have the time, expertise, or money to spare on investing in it. The government’s new scheme aims to remove some of these barriers.
The scheme will run from May 2025 to March 2026, on a trial basis involving 615 firms. Businesses will be selected at random to be involved in the trial phase of the scheme.
Since the government has partnered with UK Hospitality and the Hospitality Sector Council to roll this out, further details will be shared via trade bodies and councils.
Selected businesses will be contacted this month, and must already have a smart meter installed to be eligible. It’s also helpful to keep energy usage records handy in preparation for audits. They will receive a free tailored carbon reduction plan from Zero Carbon Services and ongoing support from their dedicated ‘carbon coach’ for three months.
Aside from the carbon-reduction scheme, there are several funding opportunities out there to ease pressure on small businesses. Check out our recommendations for the best small business grants in case you’re looking for additional financial support.
