£30m in Ofgem Energy Redress funding now available for charities and community energy groups
The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has opened the first funding round in phase three of the scheme.
A total of £30 million is now available to charities and community energy groups that support households most at risk from cold homes and high energy bills across England, Scotland and Wales. Funded projects will also focus on enabling a just transition to net zero and reducing the climate impact of energy use.
The scheme distributes voluntary payments from companies that may have breached rules administered by Ofgem. The scheme supports vulnerable people, develops innovative products and services, and helps reduce carbon emissions.
Since 2018, the Energy Redress Scheme has funded over 790 projects, supporting 900,000 households across England, Scotland and Wales.
Previous projects have delivered frontline energy advice and casework for people in vulnerable situations, alongside targeted support for specific groups, providing tailored services for those with more complex needs. They have also included initiatives to increase uptake of whole-house retrofits and community energy generation, as well as trials of new business models and approaches to help households better use locally generated energy.
Graham Ayling, senior project manager for the Energy Redress Scheme at Energy Saving Trust, said:
As many households face ongoing cost pressures, we’re pleased to open this new funding round to support voluntary sector organisations. The funding will help people in vulnerable situations manage their bills and energy use, whilst supporting progress towards a just transition to net zero.
Graham Ayling, senior project manager for the Energy Redress Scheme
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement, said:
“When supplier standards aren’t up to scratch, we take action to prevent repeat failures and protect consumers. Since 2020, we’ve secured over £400 million through compliance and enforcement activity, with much of it directed to the Redress fund to support vulnerable people and accelerate progress towards net zero. This latest round of funding is another opportunity to get millions of pounds to the communities that need it the most, and we encourage organisations to apply.”
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement
The funding streams available are:
- The Main Fund, containing £19 million – aimed at projects seeking grants between £50,000 and £2 million that will support households in vulnerable situations.
- The Impact Fund, containing £1 million – aimed at projects monitoring the impact to households, of energy advice and other interventions. Applicants can apply for grants between £20,000 and £500,000.
- 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 £4.5 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 £3 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 £1.5 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.
The deadline for applications for this funding round is 5pm on Tuesday 23 June 2026, via the Energy Redress website.