Up to 90% of the UK’s ceramics industry has missed out on increased energy cost relief under the government’s British Industry Supercharger scheme. The Department for Business and Trade today announced that around 500 of the UK’s most energy intensive businesses are set to save up to £420m per year on their electricity bills from next April.
But only ten per cent of the UK’s ceramics manufacturers qualify under the scheme. National trade body, Ceramics UK, claim the government has given the sector ‘short shrift’ and continues to leave the ceramics industry saddled with uncompetitive electricity costs. It is calling for action in the forthcoming Budget to extend energy cost relief and give the industry a level playing field nationally and internationally.
Ceramics UK CEO, Rob Flello, said: “We’re urging government to extend the Supercharger scheme in the forthcoming Budget to ensure a fairer deal on high energy costs for our industry, which has been getting short shrift to date.
“The announcement of increased relief under the Supercharger scheme means that businesses in sectors such as steel, cement, glass, and chemicals will now receive up to 90% compensation for electricity network charges. However, the majority of the ceramics sector remains excluded and continues to receive no support.
“As only around ten per cent of our members qualify for the scheme, the vast majority of UK ceramic manufacturers will continue to face the highest industrial electricity prices in the G7 and globally.
“Ceramics are critical to the UK economy, enabling production of the vital products such as steel and glass, and other high temperature products that we really depend upon.
“Ironically, many of these sectors dependent on ceramics are going to qualify for the Supercharger.
“We need the government to reconsider its plans, work with us to back one of the UK’s most enduring and strategically important manufacturing industries and support us in the Budget.”
Ceramics UK has also voiced concerns that government policy, including the Supercharger scheme, focuses solely on electricity, with no relief for the costs on gas, which is predominantly used in the sector.
Rob Flello added: “The UK is a world leader in ceramics, contributing more than £2bn directly to the nation’s economy annually, £600m in exports, and employing over 20,000 people.
“That extends from advanced manufacturing through to widely-recognised giftware brands, which are highly regarded in the UK and around the world. Ceramics are also essential to national security, used in aerospace, defence and IT.
“Natural gas accounts for approximately 86% of the sector’s total energy use, making the sector uniquely vulnerable to gas price volatility and carbon costs.
“Despite this, the Department for Business, the Department for Energy, and the Treasury still do not seem to understand that energy-intensive doesn’t just mean electro-intensive. Ceramics needs help with gas prices too.
“Our members have more than 150 operating sites across the UK and the sector is already an essential part of Britain’s industrial future – but we cannot deliver what the nation needs if Government continues to misunderstand the fundamentals of our industry.”
UK ceramics industry – the facts
- Economic Contribution: The UK ceramics sector contributes over £2bn directly to the UK economy each year, supporting a wide range of high-value manufacturing, export, and innovation activity.
- Employment: The sector directly employs approximately 20,000 people across the UK, with many more supported indirectly through its supply chain. Ceramics also enables other critical industries such as construction, defence, and renewable energy.
- National Footprint: The ceramics industry is national in scope, with more than 150 manufacturing sites operating across England, Scotland, Wales, and Northern Ireland. It serves both domestic and international markets across sectors such as construction, healthcare, aerospace, energy, and lifestyle goods.
- Energy Use & Dependency: Ceramics manufacturing is highly energy-intensive, using around 5 TWh of natural gas per year, compared to just 0.65 TWh of electricity. Natural gas accounts for approximately 86% of the sector’s total energy use, making the sector uniquely vulnerable to gas price volatility and carbon costs.
- Carbon Emissions & Decarbonisation Challenge: The UK ceramics sector emits around 25 million tonnes of CO₂ annually. Over the past 20 years, emissions have been reduced by approximately 50%. While this is a significant achievement, it is important to note that offshoring and plant closures have been contributing factors to this reduction, alongside the industry’s ongoing efforts to improve efficiency and invest in cleaner technologies.
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