HUNDREDS of thousands of workers have been left worried for their futures after the government slashed financial assistance to companies to pay their energy bills.

The government is to cut aid to non-domestic energy consumers from £18 billion paid over a six-month period to £5.5bn over a whole year from April, a reduction of 85 per cent.

TUC general secretary Paul Nowak said that the cut will hit energy-intensive industries especially hard, including steel.

Mr Nowak said: “Ministers must protect jobs and livelihoods from external shocks like the surge in energy prices.

“But this announcement does not give working people the certainty that they need. Six hundred thousand workers in energy-intensive industries like steel mills, ceramic kilns and factories, and their supply chains, will be especially worried.

“Ministers must do more to make energy affordable for manufacturing. And they must work with employers and unions to future-proof our industries, helping them innovate to cut emissions.”

The Federation of Small Businesses described the move as “catastrophic,” spelling “the beginning of the end for tens of thousands of small businesses, which have been relying on the government energy support to survive this winter.”

UK Steel director general Gareth Stace said: “There will be concerns that the newly announced support falls short of that of competitor countries, including Germany.

“The government is betting on a calm and stable 2023 energy market, in a climate of unstable global markets, with the scheme no longer protecting against extremely volatile prices.”

The Treasury said current levels of government support “are not sustainable.”