£40 million fund opens for charities and community energy groups through Energy Redress Scheme

The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) opened for its eleventh funding round on Thursday 27 February 2025. The scheme is open to organisations across England, Scotland, and Wales.

£40 million in grants is available to charities and community energy groups that support households most at risk from cold homes and high energy bills. 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. 

Ofgem’s enforcement and compliance activity collects voluntary payments from companies that may have breached Ofgem administered rules. The scheme prioritises supporting people in vulnerable situations, enabling organisations to develop innovative products or services and empowering consumers to improve their carbon footprint.

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.

Since 2018, the Energy Redress Scheme has funded more than 647 projects across England, Scotland and Wales. We manage the allocation of funding for the scheme. Previous 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, Ofgem, 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 £40million up for grabs for supporting vulnerable customers, innovative projects and paving the way for net zero, we strongly encourage organisations to apply.”

Graham Ayling, senior project manager at Energy Saving Trust, said:

“With annual energy bills predicted to rise from April, we’re pleased to offer this funding to support voluntary sector organisations in delivering their vital work, helping households to manage their bills and stay warm. This funding will also enable innovation, carbon reduction and the development of citizen-owned renewable energy projects that benefit households in or at risk of fuel poverty.”

The deadline for applications to this funding round is 5pm on 20 March 2025, via the Energy Redress website. Organisations not registered with the scheme must register 10 working days before the relevant fund closes to allow time for eligibility checks.