New Government Scheme to Help UK Hospitality Businesses Cut Energy Bills

Energy Efficiency Buildings & Architecture

Written by Onye Dike

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Published June 10th, 2025

2 min read

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Over 600 UK pubs, cafes, restaurants and hotels will benefit from free energy efficiency assessments under a new government-backed initiative launched in May 2025. The year-long trial, delivered by sustainability specialists Zero Carbon Services, aims to help small and medium-sized hospitality businesses reduce energy costs while cutting carbon emissions, with projected savings exceeding £3 million across the sector, according to a UK government press release.

The scheme comes at a critical time for an industry facing soaring energy bills and climate-related challenges. Recent extreme weather events have disrupted supply chains and increased operational costs, putting additional pressure on businesses that form the backbone of local communities. Industry Minister Sarah Jones emphasized the dual benefits of the program: "By helping venues reduce energy waste, we're not just cutting emissions – we're helping them protect jobs and keep serving their communities."

Participants will receive personalized assessments identifying practical, cost-effective upgrades such as LED lighting installations, heating system optimizations and improved insulation. Zero Carbon Services CEO Mark Chapman explained: "Most venues can achieve 10-20% energy savings through simple, low-cost measures – money that can be reinvested in staff or customer experience."

The hospitality sector contributes £93 billion annually to the UK economy and employs 3.5 million people, yet a recent Federation of Small Businesses report found only 26% feel equipped to transition to net zero. This knowledge gap makes the trial particularly valuable, according to UKHospitality CEO Kate Nicholls: "Businesses are eager to become more sustainable but need practical support to make it happen."

Running through March 2026, the initiative aligns with the government's broader Industrial Decarbonization Strategy. Beyond immediate savings, it aims to create long-term resilience in a sector where energy costs typically represent 8-10% of turnover. With successful implementations potentially being rolled out nationwide, the trial could mark a turning point for sustainable hospitality in the UK.