British Industrial Competitiveness Scheme (BICS) Update: Government Response & Eligibility Framework
Published: 23 April 2026
On the 16th April 2026 The Department for Business and Trade (DBT) published its response to the British Industrial Competitiveness Scheme (BICS) eligibility consultation. The scheme will exempt eligible businesses from paying the indirect costs of the Renewables Obligation (RO), Feed-in Tariffs (FIT), and the Capacity Market (CM).
The government has confirmed the scheme is expected to average around £600 million per annum (originally approx. £300m pa). The scheme is expected to support around 10,000 businesses, which is an increase from the initial estimate of 7,000. Eligible companies will receive support of around £35 to £40/MWh.
The BPF welcomes the partial recognition of the UK Plastics industry as a Foundational sector. Plastics are an essential building block for the UK’s advanced manufacturing, construction, and food supply chains. In the original publication, none of the relevant codes to the UK Plastics industry were included which have now been updated. The information below provides an in-depth breakdown of how this has evolved and what the next steps are for both the BPF itself and its member firms.
The Department of Business & Trade are hosting a webinar on Tuesday 12th May 10:00am. To sign up, Click Here.
Confirmed Eligibility Framework
To qualify for support, a business must operate in an eligible sector (SIC Code) and manufacture at least one eligible product (HS Code) alongside site-specific intensity tests:
- Sector Requirement: Companies must be in an eligible Standard Industrial Classification (SIC) sector listed in the government's Annex A (full list exported below in table 1). These sectors are further defined as either "Frontier manufacturing industries" or "Foundational manufacturing industries".
- Product Requirement: Companies must manufacture at least one eligible Harmonised System (HS) coded product listed in Annex A.
- Electricity Intensity Threshold: Your sector must pass an electricity intensity threshold, calculated as "electricity consumption ÷ GVA". The thresholds depend on whether the SIC Code is defined as Foundational or Frontier.
- For Frontier industries, only SIC codes with electricity intensity over 0.9% will be eligible, making it a lower and easier threshold to meet.
- For Foundational industries, only SIC codes with electricity intensity over 2.7% will be eligible.
Site-Level Application Rules
The government response clarifies that support depends on the proportion of electricity used on a site for eligible products. Businesses must provide details of all import Metering Point Administration Numbers (MPANs) related to the site, and the ratio of eligible consumption to total site electricity will determine the exemption.
- If less than 25% of electricity usage at the site relates to eligible manufacturing, no exemption is awarded.
- If between 25% and 50% of electricity usage at the site relates to eligible manufacturing, a 50% exemption is applied.
- If 50% or more of electricity usage at the site relates to eligible manufacturing, a 100% exemption is applied.
Impact on the UK Plastics Sector: Included Classifications
The following SIC Codes appear in Annex A as Foundational Industries*:
- 2016: Manufacture of plastics in primary forms
- 2221: Manufacture of plastic plates, sheets, tubes and profiles
- 2229: Manufacture of other plastic products
- 3832: Recovery of sorted materials
*Note: The following SIC Codes are not included in Annex A (despite the BPF calling for their inclusion in our consultation response).
- 2222: Manufacture of plastic packaging goods
- 2223: Manufacture of builders' ware of plastic
Furthermore, Annex A found numerous plastics products included via HS Codes, encompassing essential raw materials such as Polyethylene, Polypropylene, Polyvinyl Chloride, Epoxide Resins amongst various others...
Critical Omissions: BPF Advocacy and Next Steps
Despite these positive inclusions, an initial review of the drafted SIC and HS codes reveals significant gaps within the supply chain, most notably for recycling infrastructure, essential packaging, and construction materials. Without these codes, the scheme risks undermining the UK's broader objectives regarding the Circular Economy, Net Zero, and national infrastructure resilience. The BPF stands ready to provide further data and work collaboratively with the Department to ensure this scheme effectively safeguards the competitiveness of British industry.
ACTION REQUIRED: A follow-up consultation focused on regulatory changes and scheme delivery is currently open. This consultation closes at 11:59pm on 14 May 2026. The BPF will take this as an opportunity to highlight the critical importance of our packaging, construction, and recycling sectors to ensure the scheme effectively safeguards British industry competitiveness. We urge you to respond directly to this consultation and share your response with us.
Consultation link: https://www.gov.uk/government/consultations/british-industrial-competitiveness-scheme-consultation-on-regulatory-changes-and-scheme-delivery
Table 1: Plastics specific (Chapter 39 - Plastics and articles thereof) HS Codes included in Annex A (Tab: “Foundational_HS_codes”)
| HS Code | Description |
|---|---|
| 390110 | Polyethylene (Specific Gravity < 0.94) |
| 390120 | Polyethylene (Specific Gravity > 0.94) |
| 390130 | Ethylene-Vinyl Acetate Copolymers |
| 390140 | Ethylene Polymers And Ethylene-Alpha-Olefin Copolymers |
| 390190 | Other Polymers Of Ethylene |
| 390210 | Polypropylene |
| 390220 | Polyisobutylene |
| 390230 | Propylene Copolymers |
| 390290 | Polymers Of Propylene And Other Olefins |
| 390410 | Polyvinyl Chloride |
| 390421 | Other Polyvinyl Chlorides, Not Plasticised |
| 390422 | Other Polyvinyl Chlorides, Plasticised |
| 390430 | Vinyl Chloride-Vinyl Acetate Copolymers |
| 390440 | Other Vinyl Chloride Copolymers |
| 390450 | Vinylidene Chloride Polymers |
| 390512 | Water-Based Poly(Vinyl Acetate) |
| 390519 | Poly(Vinyl Acetate), Except In Aqueous Dispersion |
| 390521 | Water-Based Vinyl Acetate Copolymers |
| 390529 | Non-Water-Based Vinyl Acetate Copolymers |
| 390530 | Poly(Vinyl Alcohol) (May Contain Certain Acetate Groups) |
| 390591 | Various Vinyl Polymers (Copolymers) |
| 390599 | Various Vinyl Polymers (Excluding Copolymers) |
| 390610 | Polymethyl Methacrylate |
| 390690 | Other Acrylic Polymers |
| 390710 | Poly(Acetals) |
| 390721 | Primary Form Polyethers (Excluding Polyacetals), Bis(Poe) Methylphosphonate |
| 390729 | Primary Form Polyethers (Excluding Polyacetals), With Bis(Poe) Methylphosphonate |
| 390730 | Epoxide Resins |
| 390740 | Polycarbonates |
| 390750 | Alkyd Resins |
| 390761 | Polyethylene Terephthalate (Viscosity > 78Ml/G) |
| 390769 | Polyethylene Terephthalate (Viscosity < 78Ml/G) |
| 390770 | Polylactic Acid |
| 390791 | Other Unsaturated Polyesters |
| 390799 | Other Polyesters |
| 390910 | Urea Resins And Thiourea Resins |
| 390920 | Melamine Resins |
| 390931 | Amino-Resins, Polymethylene Phenyl Isocyanate (Crude Mdi, Polymeric Mdi) |
| 390939 | Amino-Resins, Other Than Polymethylene Phenyl Isocyanate (Crude Mdi, Polymeric Mdi) |
| 390940 | Phenolic Resins |
| 391000 | Silicones, Primary Forms |
| 391110 | Petroleum Resins, Coumarone, Indene, Polyterpenes |
| 391120 | Primary Form Petroleum Resins, Poly(1,3-Phenylene Methylphosphonate) |
| 391190 | Other Polysulphides Or Polysulphones |
| 391211 | Non-Plasticised Cellulose Acetates |
| 391212 | Plasticised Cellulose Acetates |
| 391220 | Cellulose Nitrates, Collodions |
| 391231 | Carboxymethylcellulose, Salts |
| 391239 | Other Cellulose Ethers |
| 391290 | Other Cellulose Derivatives |
| 391390 | Other Polymers, Natural Or Modified |
| 391721 | Tube, Pipe Or Hose, Rigid, Of Polyethylene |
| 392111 | Cellular Styrene Polymers Sheets |
| 392113 | Cellular Polyurethane Sheets |
| 392119 | Other Cellular Plastic Sheets |
| 392190 | Other Plastic Sheets |
| 392321 | Bags, Cones Of Polymers Of Ethylene |
| 392350 | Plastic Stoppers, Lids, Caps And Other Closures |
Additional Information
Previous article published by the BPF on BICS (prior to consultation)
