Energy bills for UK pubs and breweries will be cut by around half their expected level this winter under a huge government support package.

The scheme will fix wholesale gas and electricity prices for businesses for six months from 1 October, shielding them from crippling costs.

Consumer and Industry groups welcomed the package but warned further support may be needed after the winter.

CAMRA national chairman Nik Antona (pictured) said the government announcement provides much needed certainty and will help to safeguard the nation’s pubs and breweries for the next six months as they grapple with the crisis of rising costs and consumers tightening their belts. 

Nik said: “We are particularly happy to see that scheme will apply retrospectively to fixed contracts, as some licensees have had no choice but to sign new ones at scarily high prices over the last few months.

“Licensees and pub-goers will also want to see this scheme extended for a two-year period for hospitality businesses, mirroring the household support scheme, to make sure our pubs can survive and thrive in the months and years ahead.”

Society of Independent Brewers (SIBA) chairman Roy Lakin said: “Many independent brewers have been hit hard by the recent spikes in energy prices and today’s bold step will give them six months of headroom.

“However, given the uncertainty in the energy markets, there is a danger that a cliff edge will be created next year, and serious questions remain about the criteria being used to identify the most vulnerable businesses that will be eligible for further support.”

UKHospitality welcomed the measures on energy but called for a more comprehensive package to safeguard pubs. UKH chief executive Kate Nicholls, said: “This intervention is unprecedented and extremely appreciated as we head into an uncertain winter with numerous challenges on many fronts.

“The inclusiveness of the supports announced – covering businesses small and large – will be extremely beneficial to the sector. A sector that provides a huge number of jobs, many of which are now more secure.”

Nichols reiterated her call for even more support for the sector.

She said: “We will not relent in our pursuit of a more comprehensive package to safeguard businesses and jobs. The levers of reduced VAT and business rates reliefs are still available to the government, and there must also be a comprehensive package to ensure that there is no cliff edge when these measures fall away.”