SME4Labour News
Monday 9 November 2026 | Small Business
Lloyd announces 75% Cyber Essentials discount for small firms
Thousands of UK small and medium-sized businesses can now access a new Government-backed discount on Cyber Essentials certification, after Cyber Security Minister Baroness Lloyd of Effra announced the package at the National Cyber Security Centre’s Annual Review.
The Cyber Essentials First Step Fund offers eligible micro, small and medium-sized firms a 75% discount on a first Cyber Essentials certificate. According to the Government, that can bring the cost down to as little as £80 and no more than £125 plus VAT, depending on business size. The £2.4 million fund is available on a first-come, first-served basis until March 2027, or until the money runs out. Ministers estimate around 6,000 businesses could benefit. Eligibility is limited to UK SMEs that have not held Cyber Essentials in the previous four years.
Lloyd: ‘We will back our SMEs’
A second strand, the Cyber Essentials for Suppliers Grant, is worth up to £7 million until March 2029. It allows organisations that have signed the Cyber Resilience Pledge — more than 230 so far — to refer SME suppliers for fully funded first-time certification, with access to a cyber adviser for selected firms. The Government estimates about 8,000 businesses could benefit from that offer.
Baroness Lloyd said small and medium-sized businesses “employ millions of people across our nation, and should not be left vulnerable in the age of rising cyber threats.” She added: “We are not going to sit back and let malicious actors take advantage – we will back our SMEs and help them be protected and secure.”
The Department for Digital, Culture, Media and Sport said a significant cyber-attack on a UK business or organisation could cost on average £195,000, while businesses with Cyber Essentials and turnover under £20 million also receive up to £25,000 of cyber liability insurance. Applications for the First Step Fund opened on 3 November via the IASME firststep portal: https://firststep.iasme.co.uk/
Security Minister Dan Jarvis MBE MP, in a foreword to the NCSC Annual Review published the same day, urged organisations to implement Cyber Essentials, sign the Cyber Resilience Pledge and join the NCSC Early Warning service. The announcement sits alongside wider Budget cyber measures including investment in NCSC capability and AI-related cyber defence.
Source: GOV.UK — New Government-backed cyber security protections could save UK businesses thousands (3 November 2026).