Ofgem Energy Redress Scheme opens applications with £40 million in grant funding now available for charities and community energy groups

Applications are now open for the thirteenth funding round of the Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme). Charities and community energy groups across England, Scotland and Wales can now apply for a grant through one of six funding streams, with a total of £40 million available. 

The scheme prioritises support for 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. 

Charities can apply for funding to deliver energy related projects through six 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. 

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.  

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 trialing new business models or interventions that enable households to use more locally-generated energy.  

Graham Ayling, Senior project manager for the Energy Redress Scheme at Energy Saving Trust, said: “We’re pleased to announce this new round of funding to support the voluntary sector in delivering their crucial work, helping households in vulnerable situations to stay warm during the colder months ahead.  

The funding will also support projects actively engaging local communities and households with reducing their carbon emissions as the UK transitions to net zero. We encourage charities and community energy groups to apply.” 

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.” 

The deadline for applications to this funding round is 5pm on 9 September 2025, via the Energy Redress website. 

The funding streams available are:    

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

• The Impact Fund, containing £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, containing £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, containing £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, containing £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.