# Energy Redress Scheme offers another £40 million

- Link: https://fundraising.co.uk/2025/08/21/energy-redress-scheme-offers-another-40-million/
- Published: 2025-08-21T15:06:50+01:00
- Author: Howard Lake

**The thirteenth funding round of the Ofgem Energy Industry Voluntary Redress Scheme(
Energy Redress Scheme for short) is now accepting applications for its £40 million
in grant funding for charities and community energy groups.**

Applications are invited from charities and community energy groups across England,
Scotland and Wales through one of six funding streams.

The scheme is designed to provide support for:

## Advertisement

 * people in vulnerable situations struggling with their energy bills
 * the development of innovative energy-related products or services and projects
   that empower people to reduce their carbon emissions.

In addition, this funding round also encourages applications for projects targeting
Private Rented Sector (PRS) properties.

![Energy Redress Scheme - £40 million available to eligible organisations. Apply
now](https://wfay6x.infiniteuploads.cloud/2025/08/energy-redress-scheme-13.jpeg)

## Six funding streams

Charities can apply for funding to deliver energy related projects through six different
funding streams:

**The Main Fund**, offering £25 million – aimed at projects seeking grants between
£50,000 and £2 million that will support households in vulnerable situations.

**The Impact Fund**, £2 million – aimed at projects monitoring the impact to households,
of energy advice and other interventions. Applicants can apply for grants between
£20,000 and £499,999.
**The Small Project Fund**, containing £1 million – aimed 
at projects seeking grants between £20,000 and £49,999 that will support households
in vulnerable situations.**The Innovation Fund**, £6 million – aimed at projects
that will develop innovative products or services to benefit households. Applicants
can apply for grants between £20,000 and £1 million.**The Carbon Emissions Reduction
Fund**, £4 million – aimed at projects that will reduce UK carbon emissions and 
empower households to reduce their carbon footprint. Applicants can apply for grants
between £20,000 and £1 million.**The Just Transition Fund**, £2 million – aimed 
at projects that will develop community renewable energy which will benefit energy
consumers in vulnerable situations. Applicants can apply for grants between £20,000
and £250,000.

Only one application can be made per round across all the funds.

## Source of funding

Where does the funding come for these grantmaking rounds? Ofgem’s enforcement and
compliance activity collects voluntary payments from companies that may have breached
Ofgem-administered rules.

Since 2018, the Energy Redress Scheme has allocated **£181 million** to fund more
than 720 projects across England, Scotland and Wales.

## Projects already funded

Previous projects funded through the scheme have included impartial energy advice
services for people in vulnerable situations, as well as research projects aimed
at ensuring new energy technologies meet the needs of elderly and disabled people.

Other projects have focused on increasing the uptake of whole-house energy upgrades
and trialling new business models or interventions that enable households to use
more locally-generated energy.

The deadline for applications to this funding round is **5pm on 9 September 2025**,
via the [Energy Redress website](https://energyredress.org.uk/).

**Cathryn Scott**, Regulatory Director for Market Oversight and Enforcement at Ofgem,
said:

> “This new round of funding provides a vital opportunity for charities and community
> energy groups to make a real difference for consumers who need help the most.
> “When energy suppliers fail to meet their regulatory obligations, they are held
> accountable, and the £40 million available this round will help deliver essential
> support to vulnerable households across the country.”