English Reference
noun

subsidy

n.
US /ˈsəbsɪdi/ UK /sˈʌbsɪdi/ sub·sidy UK spelling subsidies, subsidy's

  1. 01 B2 Upper Intermediate AcademicFormal

    money given by a government to help an industry or business so that prices stay low.

    a financial contribution granted by a government or public body to support an enterprise or keep prices competitive.

    Simple

    The government provides a subsidy to farmers to keep the price of milk low.

    In context

    Agricultural subsidies remain a contentious issue in international trade negotiations, as they can distort market prices and disadvantage producers in developing nations.

    Usage

    Often used with the verbs 'provide', 'receive', or 'cut'.

  2. 02 C2 Proficiency ArchaicBritish English Law

    in the past, a tax or sum of money given by the British parliament to the King or Queen.

    a historical grant of money to the British monarch by parliament for special purposes, often derived from a tax on property.

    Simple

    The King requested a subsidy from parliament to pay for the upcoming war.

    In context

    The monarch's reliance on parliamentary subsidies eventually led to a shift in the balance of power between the Crown and the legislature.

    Usage

    Primarily encountered in historical or legal texts regarding the English constitution.

It is, in all but name, Britain's first air-conditioning subsidy - but it is badged as a heat pump, and only worth a third of the £7,500 for a heating-only model.

BBC News· 29 Jul 2026

And until recently, a subsidy scheme accounted for around 10% of the average household bill.

BBC News· 15 Apr 2026

From Middle English subsidy, subsidie, from Anglo-Norman subsidee, subsidie, from Old French subside, from Latin subsidium (support, assistance), from subsido from sub- (“below”) + sīdō (“sit”).

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

This entry
Origin xno subsidee
Level C1 · Advanced
Frequency Frequent
Updated