VCSE

Charities and community energy groups across Great Britain now have a fresh opportunity: the Ofgem Energy Industry Voluntary Redress Scheme (often called the “Energy Redress Scheme”) has opened its latest funding round — with a total of around £40 million available for groups in England, Scotland and Wales.

What it supports
The fund is designed to back projects that:

  • Support households in vulnerable situations — for example those facing high energy bills or living in cold homes. 
  • Develop innovative products or services related to energy usage, management or efficiency. 
  • Reduce carbon emissions and help households adopt low-carbon energy habits. 
  • Target the private rented sector (PRS) in this round — another key priority. 

Funding streams & amounts

Applicants can apply through several streams, including:

  • Main Fund (£25 million) – for grants between £50,000 and £2 million. 
  • Impact Fund (£2 million) – for grants between £20,000 and £499,999 focusing on monitoring and evidence. 
  • Small Project Fund (£1 million) – for smaller grants (£20,000–£49,999) supporting vulnerable households. 
  • Innovation Fund (£6 million) – £20,000–£1 million, for new products/services. 
  • Carbon Emissions Reduction Fund (£4 million) – £20,000–£1 million, projects with strong carbon-cutting credentials. 
  • Just Transition Fund (£2 million) – £20,000–£250,000, for developing community-led renewables benefiting consumers in vulnerable situations. 

Who can apply & how

Registered charities and community energy groups (e.g., Community Interest Companies, Co-operatives, Community Benefit Societies) in England, Scotland and Wales are eligible. 

Steps to take:

Register your organisation with the scheme so that eligibility and due diligence checks can be completed. 

When the funding window opens, submit an application via the online dashboard. 


Why this matters

Many households are struggling with energy costs, inefficient homes and rising carbon footprints. This fund offers a real chance to deliver impactful support, to drive innovation and to embed more resilient, energy-efficient practices in local communities.

Want to find out more?

Visit the official Energy Redress website and review the guidance: Energy Redress Scheme – Apply for funding

 Get a news summary and overview of eligibility: Applications open NOW – Ofgem Energy Redress Scheme

 


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