Small and medium-sized hospitality businesses across the UK are set to benefit from a new government-backed scheme designed to cut energy costs and support net zero ambitions. The initiative, unveiled as part of the wider Plan for Change, will provide free energy and carbon reduction assessments to over 600 venues, including pubs, caf�s, restaurants, and hotels.
Delivered in partnership with Zero Carbon Services, a sustainability consultancy specialising in hospitality, the scheme aims to deliver more than £3 million in cost savings while reducing carbon emissions by approximately 2,700 tonnes. The initiative is part of the government’s commitment to making the UK’s hospitality sector more sustainable and economically resilient.
The hospitality sector, which includes a high number of independent and family-run businesses, plays a vital role in communities and the broader economy. It currently supports around 3.5 million jobs and contributes over £90 billion annually to the UK economy. However, rising energy prices and the pressure to become more environmentally responsible have placed significant strain on many operators.
The trial will identify practical, low-cost opportunities for energy reduction, such as sealing insulation gaps, switching to low-energy lighting, and adjusting heating systems. These changes may seem minor in isolation, but together they could deliver substantial savings and operational efficiencies.
Sarah Jones, Minister for Industry, emphasised that the government is backing the hospitality sector to thrive in a greener future. She noted that energy efficiency is not only good for the planet but also allows businesses to reinvest savings into growth, staffing, and service improvements.
Mark Chapman, Chief Executive of Zero Carbon Services, highlighted that extreme weather and climate-related pressures are already affecting the hospitality industry. From food supply disruptions to fluctuating energy demands, the sector is under increasing pressure to adapt. He pointed out that many businesses are unaware of simple, actionable steps they can take to reduce energy use and cut costs, which this new scheme is designed to address.
Trade bodies have responded positively. UKHospitality welcomed the move, saying that businesses are increasingly looking for ways to reduce emissions and become more sustainable. The British Beer and Pub Association added that the guidance and insights from the trial would be particularly valuable to small pubs trying to manage energy bills. The British Institute of Innkeeping echoed these sentiments, noting that energy costs remain a key concern for licensees and any support is timely and welcome.
The trial will run until March 2026, supported by £350,000 of government funding. It aims to create a model that could potentially be rolled out more widely across the sector. One of the added benefits is that the initiative helps to bridge the knowledge gap among business owners. While many hospitality operators want to reduce their environmental impact, only a small proportion feel confident enough to act without external support.
By connecting these businesses with trusted advisers and providing tailored assessments, the scheme hopes to remove the barriers that often prevent sustainable change.
For firms in hospitality, this is not only a cost-saving opportunity but a clear signal that environmental efficiency is fast becoming a core business strategy.