Government Offers 75% Off Cyber Essentials for SMBs

The UK government announced on 3 November 2026 that small and medium-sized businesses can now claim a 75% discount on Cyber Essentials certification through a new £2.4 million “First Step Fund.” For many businesses, that brings the cost down to between £80 and £125 plus VAT – a small fraction of the typical going rate.

The announcement came alongside the National Cyber Security Centre’s (NCSC) 2026 annual review, which found that most successful attacks against UK businesses still exploit basic security gaps: unpatched systems, weak passwords, and misconfigured firewalls. Cyber Essentials is the government-backed scheme designed to close exactly those gaps, and the new discount is intended to make certification accessible to businesses that have so far put it off.

What is Cyber Essentials?

Cyber Essentials is a government-backed certification that checks five technical controls: firewalls, secure configuration, user access control, malware protection, and software update management. Achieving it shows clients, insurers, and suppliers that your organisation has the security basics covered.

It is already a requirement for some government contracts, and it is increasingly expected by larger organisations from their supply chain partners. Many UK cyber insurers now ask about it on application forms, and some offer lower premiums to businesses that hold it. In short, it has quietly become a baseline expectation for trading with serious organisations.

There are two levels: Cyber Essentials (self-assessed) and Cyber Essentials Plus (independently verified by a third party). The First Step Fund discount applies to the self-assessed Cyber Essentials certification – the natural starting point for a business that does not yet hold either level.

For a fuller explanation of what the certification covers and why it matters, see our guide to Cyber Essentials certification.

Who qualifies and how much does it cost?

The discount is available to micro, small, and medium-sized businesses that have not held Cyber Essentials certification in the past four years. It is delivered through IASME, the NCSC’s official delivery partner for the scheme.

Eligible businesses will pay between £80 and £125 plus VAT, depending on their size. The fund is expected to support around 6,000 businesses; once the £2.4 million allocation is used up – or by the end of March 2027, whichever comes first – the scheme closes. This is a first-come-first-served arrangement, so there is a real reason to act sooner rather than later.

If your business has signed the government’s Cyber Resilience Pledge, or works with a larger organisation that has, you may also qualify for a free cyber security advisor to support you through the certification process.

Why this matters for your business right now

Cyber Essentials certification comes up regularly in situations UK SMBs encounter every day:

• Cyber insurance: Insurers ask about it at renewal and many tie premiums to whether you hold it. Our post on what UK cyber insurers expect in 2026 goes into more detail.
• Procurement and tenders: Public sector contracts often require it; more private sector buyers are adding it to supplier questionnaires.
• Client due diligence: Larger clients – accountancy firms, solicitors, healthcare organisations – are increasingly asking for it before onboarding new suppliers.

The NCSC’s 2026 review is explicit: UK cyber resilience is not where it needs to be, and Cyber Essentials is the foundation every business should build on. Getting certified now – at up to 75% off – is one of the most cost-effective things you can do before the end of this financial year.

How we can help

We guide businesses through the Cyber Essentials process from end to end. That means reviewing your current technical controls, identifying any gaps before you submit, and working through the self-assessment with you so there are no surprises on the day. It is part of the hands-on support we provide as part of our IT security services and managed IT support.

If you already hold Cyber Essentials and want to progress to the independently verified Cyber Essentials Plus level, we can help with that too. Visit our Cyber Essentials service page to find out more.

If you would like to find out whether you qualify for the discount and get the process underway, get in touch or call 01452 701355 for a no-obligation chat.