£40 million fund opens again for charities and community energy groups

Howard Lake | 27 February 2025 | News

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The Energy Redress Scheme (or Ofgem Energy Industry Voluntary Redress Scheme in full) has opened its 11th funding round for applications.

The scheme offers £40 million in grants to charities and community energy groups across England, Scotland and Wales that support households most at risk from cold homes and high energy bills.

Applications about projects which focus on contributing to a just transition to net zero and mitigating the climate change impacts of energy consumption will also be considered.

The scheme prioritises:

• supporting people in vulnerable situations
• enabling organisations to develop innovative products or services
• and empowering consumers to reduce their carbon emissions.

Charities can apply for funding to deliver energy-related projects through five different funding streams, including the Main Fund and Small Fund.

Community energy groups can also apply for funding through the Carbon Emissions Reduction Fund, Innovation Fund, or Just Transition Fund.

Where the money comes from

The funding available from the Energy Redress Scheme is derived from voluntary payments from companies that may have breached rules administered by Ofgem, Britain’s independent energy regulator.

It is distributed on Ofgem’s behalf by Energy Saving Trust, an independent organisation dedicated to promoting energy efficiency, low carbon transport and sustainable energy use. 

Past projects which have received funding

Since 2018 the Energy Redress Scheme has funded more than 647 projects across England, Scotland and Wales. These projects have included:

• Impartial energy advice services supporting vulnerable people.
• Digital media campaigns engaging consumers with energy issues and available support.
• Research projects ensuring new energy technologies meet the needs of elderly and disabled people.
• Initiatives boosting the uptake of whole-house retrofits.
• Trials of new business models and interventions enabling households to utilise more locally generated energy.

Cathryn Scott, regulatory director of market oversight and enforcement, said:

“We know energy affordability remains a challenge for many households. As the regulator, we use all the powers at our disposal to protect consumers.

“Our robust compliance and enforcement work provides justice to customers who’ve been treated badly while generating redress funding for vulnerable customers struggling with their energy bills. With another £40 million up for grabs for supporting vulnerable customers, innovative projects and paving the way for net zero, we strongly encourage organisations to apply.”

How to apply

The deadline for applications to this funding round is 5pm on 20 March 2025, via Energy Redress section of Energy Saving Trust’s website.

Organisations not yet registered with the scheme must do so 10 working days before the relevant fund closes to allow time for eligibility checks to take place.

• £10 million funding available through Energy Redress Scheme (15 August 2019)
  
• £40 million funding through the Ofgem Energy Redress Scheme (12 December 2024)

About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale. He is the founder of Fundraising Camp and co-founder of GoodJobs.