Ofgem Energy Redress Scheme launches new fund to monitor impact of energy advice services for vulnerable households
The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) opened its twelfth funding round for applications on Monday 19 May 2025.
A total of £40 million is available for charities and community energy groups, including community interest companies, co-operative societies and community benefit societies, to apply for grants through six funding streams, supporting projects across England, Scotland and Wales.
Eligible projects may focus on supporting households most at risk from cold homes and high energy bills, developing innovative products and services related to domestic energy use, or reducing carbon emissions
A new fund, being piloted in this funding round, will focus on monitoring the impact of projects providing energy advice services and other support to people in vulnerable situations. This fund aims to encourage more widespread adoption of impact monitoring.
Ofgem’s enforcement and compliance activity collects voluntary payments from companies that may have breached Ofgem administered rules. Since 2018, the Energy Redress Scheme, managed by Energy Saving Trust, has distributed £169 million in funding to support more than 687 projects.
Previous projects have included impartial energy advice services supporting vulnerable people, initiatives boosting the uptake of whole-house retrofits and trials of new business models and interventions helping households make greater use of locally generated energy.
Graham Ayling, senior project manager at Energy Saving Trust, said:
“We’re pleased to offer this funding to the voluntary sector and look forward to supporting projects that help those most in need to heat their homes, while also contributing to a greener and fairer energy future.”
Graham Ayling, senior project manager at Energy Saving Trust
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement at Ofgem, said:
“This new round of funding presents an exciting opportunity for charities and community energy groups dedicated to supporting those in need. Energy suppliers who fail to comply with our rules face the consequences, and an additional £40 million will now be allocated to providing essential support and guidance for vulnerable people.”
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement at Ofgem
The deadline for applications to this funding round is 5pm on 11 June 2025, via the Energy Redress 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.
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 vulnerable energy consumers. Applicants can apply for grants between £20,000 and £250,000.