A national ‘Help to Green’ scheme will help narrow the resource gap of small firms in their pursuit of net zero as they face significant differences in government support levels from region to region, according to new research from the Federation of Small Businesses (FSB) and Warwick Business School, published today (Tuesday 26 September). The ‘Help to Green’ scheme is a FSB initiative backed by 11 other trade associations and former Energy Minister Chris Skidmore’s Review of Net Zero. It consists of an online hub of practical information on reducing energy usage and a voucher or grant scheme, with a value of up to £5,000 a time. The research, which was carried out by researchers at the Enterprise Research Centre at Warwick Business School, measured the breadth and depth of net zero support programmes. It found that less than one per cent of local small firms have benefitted from key local support schemes across England on net zero, raising concerns over the reach and accessibility of the programmes as the UK’s 2050 target edges closer. The Less Than 1% Club report identifies 719 interventions across England targeting SMEs, such as online tools and information, training and one-on-one advice, provided through 282 programmes. Despite the substantial number of programmes and interventions, these are failing to reach the vast majority of small firms. The most common type of net zero intervention offered to firms is online tools and information. Training, one-to-one advice and grants are also prevalent. Small firms face a fragmented and uneven net zero support landscape. For example, in the East of England, home to over 540,000 small businesses, there were only 43 interventions from 19 programmes. In contrast, more than 530,000 small businesses in the South West region were offered 102 interventions through 37 programmes. Small businesses also face future challenges due to the changing funding landscape for net zero business support in England. While local authorities emerge as the most common funder, the second most common source of funding – the European Regional Development Fund – came to an end in June this year, as a result of the UK’s withdrawal from the European Union, leaving the future of some programmes in limbo. In light of the findings, the report puts forward a list of recommendations to the UK Government and local authorities, including:

• Introducing a national ‘Help to Green’ scheme, consisting of an online hub of practical information on reducing energy usage and carbon emissions. The scheme would include a voucher or grant scheme, with a value of up to £5,000 a time, which would make a grant contribution to investing in low emission transport solutions, sustainable manufacturing, energy efficiency or microgeneration.
• Simplifying the English business support landscape for net zero by establishing one business support brand across England, e.g. Business England. This can make it easier for businesses of different sizes to navigate, whilst maintaining the connection to local support.
• Offering small businesses a combination of audits and grants for net zero where possible. Audits provide clarity over the required steps which are tailored to specific needs. For most small businesses, participation and help overcoming the financial barrier many businesses face in the transition to net zero.

Richard Askew, FSB England Policy Unit Chair, said: “Small businesses play a critical role in reaching net zero by 2050 and it’s encouraging to see that many firms are taking steps to mitigate their impact on the environment – from installing basic measures such as LED lighting to becoming fully self-sufficient microgenerators. “But reaching net zero is a complex process and there are still many small businesses that lack the money, resources and time to progress their decarbonising efforts. “Despite the availability of various programmes and interventions aimed at net zero practices, there are major concerns about their accessibility and reach. These existing programmes are also now facing uncertainty due to the end of the European Regional Development Fund, changing the funding landscape. This report outlines ways in which the current gap between engagement and achieving net zero can be closed. To make sure we remain on track towards net zero, we need to make sure existing barriers are overcome so that small firms can access the right support.” Dr Kevin Mole, Associate Professor at Warwick Business School and author of the report, said: “Our research has found that net zero support in England is fragmented and piecemeal, which is concerning when we consider the scale of the climate challenge we are facing. Small firms are being asked to pick up the bill for net zero when they are still recovering from the impacts of the pandemic and find themselves in the midst of a cost of living crisis. This situation urgently needs to be addressed and more investment in support is clearly justified given that the benefits from moving to net zero are shared by all of us.”

New energy storage technology, which could significantly reduce household bills and help the UK achieve net zero, has been installed at the University of Nottingham’s Creative Energy Homes. The installation is the latest step for the Advanced Distributed Storage for Grid Benefit Project (ADSorB) – a consortium led by researchers from the University of Sheffield – which aims to commercialise the use of new thermal energy storage technologies developed at the University of Loughborough. The technologies store excess energy when renewable energy sources, such as solar or wind, are plentiful, so it can be released and used during peak times or to make up for shortfalls in supply. The team previously undertook a feasibility study, where they evaluated Thermochemical Storage (TCS), which can offer longer term storage, and Phase Change Material (PCM) technologies, which are more agile and offer shorter term storage. Combined, the two have the potential to significantly reduce carbon emissions, provide a more flexible approach to renewable energy storage and support the country’s net zero ambitions. These technologies have since been developed and adapted to become modular thermal energy stores that can be slotted into homes alongside the household’s existing energy system – whether that’s as part of a retrofit or within a new build. These prototypes have been installed at Nottingham. “Soaring household bills have been hitting headlines for months as the cost-of-living crisis continues. Therefore, finding an effective alternative has never been more important,” said Mark Gillott, Professor of Sustainable Design at the University of Nottingham. Professor Gillott continued: “Thermal energy storage has the potential to solve two issues in one – not only is it cost effective, but it also removes renewable energy’s dependency on specific weather conditions. “This is the first of two installations scheduled to take place at Nottingham this year. We’ve started with PCM technology and will follow with TCS later on in autumn, which will provide us with comparable data for both types of technology. By undertaking these trials at lived-in homes, we’ll be able to provide accurate results that will allow us to scale up the technology and bring it to market as quickly as possible.” Alongside Nottingham, the project team is made up of researchers from Sheffield and Loughborough, universities, as well as Mixergy – a market leader in innovative, grid-connected hot water storage. “This is an exciting milestone to have reached and we are now looking forward to generating the data, and creating an evidence base to demonstrate the benefit that distributed energy storage can provide,” said Dr Rob Barthorpe, from the University of Sheffield’s Department of Mechanical Engineering. Dr Barthorpe continued: “We hope this will validate our modelling that showed not only consumer benefits through reduced bills, but grid and carbon reduction benefits that will make significant contributions to the UK’s net zero goals.” The £2.6m project is funded by the Department for Business, Energy and Industrial Strategy (BEIS) through the Longer Duration Energy Storage Demonstration programme, part of the £1bn Net Zero Innovation Portfolio (NZIP).

The Pensions Regulator is set to investigate wilko’s shareholders over dividends paid to themselves prior to the firm entering administration. It comes as a £56m deficit in the wilko pension fund has been uncovered, according to reports from The Sunday Times. The retailer’s administrators, PwC, think this deficit could be higher on a buy-out basis (£76m). If wilko’s owners put the fund at risk, they could be made to pay any shortfalls. Wilko’s pension scheme will be assessed by the Pension Protection Fund.