News 3 June 2026

£30m in Ofgem Energy Redress funding now available for charities and community energy groups

Today (2 June 2026) The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has opened the first funding round of phase three.

£30 million is now available to charities and community energy groups that support people most at risk from cold homes and high energy bills across Great Britain. Funded projects will also focus on 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
helps reduce carbon footprints

Funding 'will help people in vulnerable situations manage their bills and energy use'

Our senior project manager Graham Ayling 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, while supporting progress towards a just transition to net zero”.

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.”

What funding streams are available?

The funding streams available are:

The Main Fund (£19 million) – aimed at projects seeking grants between £50,000 and £2 million that support people in vulnerable situations.
The Impact Fund (£1 million) – aimed at projects monitoring the impact to people, of energy advice and other interventions. Applicants can apply for grants between £20,000 and £500,000.
The Small Project Fund (£1 million) – aimed at projects seeking grants between £20,000 and £49,999 that support people in vulnerable situations.
The Innovation Fund (£4.5 million) – aimed at projects that will develop innovative products or services to benefit people. Applicants can apply for grants between £20,000 and £1 million.
The Carbon Emissions Reduction Fund (£3 million) – aimed at projects that reduce the UK carbon footprint and empower people to reduce their carbon footprint. Applicants can apply for grants between £20,000 and £1 million.
The Just Transition Fund (£1.5 million) – aimed at projects that develop community renewable energy that will benefitpeople in vulnerable situations. Applicants can apply for grants between £20,000 and £250,000.

How do I apply for Energy Redress funding?

The deadline for applications for this funding round is 5pm on Tuesday 23 June 2026, via the Energy Redress website.

What is Energy Redress?

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
targeted support for specific groups
tailored services for those with more complex needs

They’ve also included initiatives to increase:

uptake of home energy upgrades and community energy generation
trials of new business models and approaches to help people better use locally generated energy

Latest news