The government has announced a GBP120 million support package for the UK ceramics sector, with applications expected to open in the summer once final design work is complete.
For small manufacturers, suppliers and specialist workshops in the ceramics chain, the detail will matter more than the headline figure. The package is intended to support capital investment in energy efficiency and decarbonisation projects, with some operational support for successful applicants facing higher costs.
What has been announced
GOV.UK says the ceramics package is part of a wider announcement on the long-term resilience of the chemicals and ceramics industries. The ceramics element is worth GBP120 million and is aimed at energy efficiency, decarbonisation and long-term competitiveness.
The government says support will be open to eligible UK manufacturers across areas including refractory products, clay building materials, household ceramics and technical ceramics. Further delivery details are due to be confirmed shortly in the summer.
The same announcement also included a separate GBP350 million Critical Chemicals Resilience Fund. That matters because both sectors face similar questions around energy costs, critical supply chains and industrial competitiveness, but ceramics firms will need to focus on the specific eligibility and application rules for their own package.
Why energy costs sit at the centre
Ceramics production can be highly energy intensive. Kilns, firing processes and high-temperature manufacturing make energy exposure a direct commercial issue, not just a background cost.
BBC reporting on the announcement highlighted industry concerns around rising energy and labour costs, overseas competition and recent business failures in the sector. It also pointed to local research in north Staffordshire warning that ceramics firms were vulnerable to gas price shocks.
That makes this package relevant beyond the largest industrial names. Smaller manufacturers may not have the same capacity to absorb volatile energy bills, fund equipment upgrades up front, or devote staff time to complex grant applications. If the scheme is designed with SMEs in mind, it could help some firms bring forward investments that would otherwise sit on the shelf.
What small firms should prepare
The first useful step is to understand current energy use. Businesses should know which processes use the most power or gas, where waste is happening, and which upgrades are most likely to produce a measurable saving. A rough wish list is weaker than a clear investment case.
The second step is to gather evidence. If applications open in the summer, firms may need quotes, supplier specifications, energy bills, production data, payback estimates and cash-flow assumptions. Waiting until the scheme opens could leave very little time to make a credible submission.
The third step is to separate capital and operational pressure. A new kiln, insulation upgrade, monitoring system or process change may reduce costs over time, but the firm still has to manage cash flow during installation, disruption and any match-funding requirement. BritishSME has previously covered how late payments can squeeze SME cash flow, and that risk can become sharper when a business is trying to invest.
Questions to ask before applying
Small manufacturers should watch for the eligibility rules first. The announcement mentions eligible UK manufacturers across several ceramics subsectors, but the final scheme design will decide who can apply, what costs are covered, and whether smaller applicants can access the fund without disproportionate paperwork.
They should also check timing. A business that needs to order equipment, arrange installation or coordinate production downtime may have a narrow window if grant decisions, supplier lead times and seasonal order patterns collide.
Finally, firms should look at competitiveness as well as compliance. The strongest project may not simply be the one that ticks a decarbonisation box. It may be the upgrade that cuts energy use, improves reliability, protects margins, and helps the business quote confidently for work in advanced manufacturing, construction, defence, tech or household goods supply chains.
The practical takeaway
The GBP120 million ceramics package is a real signal that government sees the sector as strategically important. But for small manufacturers, the opportunity will depend on the fine print: eligibility, application burden, cash-flow requirements and whether the funding can be matched to practical, near-term projects.
Firms that may qualify should use the time before summer details emerge to map energy use, identify credible upgrades, gather supplier evidence and decide which investments would strengthen the business rather than simply chase a grant.
Sources: GOV.UK: Government steps in to back long-term resilience of UK’s chemicals and ceramics industries; BBC News: Government pledges GBP120m to support ceramics firms; Stoke-on-Trent City Council: ceramics sector assessment.
