The UK government is offering eligible smaller businesses a 75% reduction on their first Cyber Essentials certification, lowering the entry cost for firms seeking a basic security credential increasingly requested in supplier tenders.
The £2.4 million First Step Fund applies to UK micro, small and medium-sized businesses that have not held the certification during the past four years. Fees range from £80 to £125, plus value-added tax (VAT), depending on company size. The government estimates about 6,000 businesses could benefit. Applications are handled in order, and the fund closes by March 2027 or sooner if its allocation runs out.
IASME, the scheme’s delivery partner, lists standard fees of £320 for businesses with zero to nine employees, £440 for those with 10 to 49 and £500 for those with 50 to 249, all plus VAT. After the discount, those rates come to £80, £110 and £125, respectively.
A separate grant of up to £7 million is available through March 2029 for eligible UK-based small and medium-sized enterprise suppliers to organizations in the Cyber Resilience Pledge. Signatories must nominate suppliers and guide them through the application. The grant covers first-time certification and tailored Cyber Advisor support. The government estimates about 8,000 businesses could benefit; more than 230 organizations had signed the voluntary pledge when the offer was announced.
Cyber Essentials is increasingly part of the procurement process: the National Cyber Security Centre (NCSC) says more organizations require it from suppliers seeking contracts. The government recommends the certification as a baseline cybersecurity standard. Its safeguards address firewall use, secure settings, software updates, user access and malware protection.
Government research estimates that a significant cyberattack costs an individual UK business nearly £195,000 on average. The analysis covers successful incidents costing at least £500 and averages across firm sizes and sectors. Researchers describe the estimate as indicative, and the analysis relies mainly on U.S. data; it is not a projection of savings from the certification offer.
The First Step Fund is scheduled to close in March 2027, while the supplier grant runs through March 2029.
