Grant News

New Funding Round Opens to Help Households Facing Cold Homes and High Energy Bills (England, Scotland & Wales)

A new £30 million funding round has opened to support charities and community energy organisations working with households most at risk from cold homes and high energy bills.

The funding is available through phase three of the Ofgem Energy Industry Voluntary Redress Scheme, which distributes voluntary payments from energy companies that may have breached Ofgem rules. The scheme supports projects across England, Scotland and Wales that help vulnerable households, reduce carbon emissions, develop innovative energy products and services, and support a just transition to net zero.

Six funding streams are available.

  • The £19 million Main Fund offers grants between £50,000 and £2 million for projects that support households in vulnerable situations.
  • The £1 million Small Project Fund offers grants of between £20,000 and £49,999 for similar work.
  • The £1 million Impact Fund provides grants of between £20,000 and £500,000 for projects measuring the impact of energy advice and other interventions.
  • The £4.5 million Innovation Fund offers grants ranging from £20,000 to £1 million to develop new products or services that benefit households.
  • The £3 million Carbon Emissions Reduction Fund supports projects that reduce UK carbon emissions and help households lower their carbon footprints, with grants ranging from £20,000 to £1 million.
  • The £1.5 million Just Transition Fund offers grants of between £20,000 and £250,000 for community renewable energy projects benefiting vulnerable energy consumers.

Registered charities, community interest companies, co-operative societies and community benefit societies can apply, provided their projects meet the scheme’s priorities and benefit people in England, Scotland or Wales.

Since 2018, the Energy Redress Scheme has funded more than 790 projects, supporting around 900,000 households. Previous projects have included energy advice, casework, tailored support for people with complex needs, retrofit initiatives, community energy generation, and trials of new models to help households use locally generated energy.

The deadline for applications is 5pm on  23 June 2026.

 

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3rd June 2026