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Energy Intensive Industries: Compensation

Asked by Navendu MishraLabourDepartment for Business and TradeTabled Answered 16 June 2026UIN 7569

The question

To ask the Secretary of State for Business and Trade, if he will broaden the eligibility criteria for the Energy Intensive Industries Compensation Scheme to include more food manufacturing businesses.

Answered by Chris McDonald

The Energy-Intensive Industries (EII) Compensation Scheme compensates eligible businesses for the indirect costs of the UK Emissions Trading Scheme and Carbon Price Support Mechanism, targeting businesses at high risk of carbon leakage, the offshoring of production overseas to countries with fewer climate change policy controls. The Government intends to review the scheme this year and publicly consult on the eligibility criteria. However, any changes to the scheme are subject to available budgets and ministerial approval. I encourage food manufacturing businesses to engage with this review when the opportunity arises.

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