Voluntary sector organisations that support people who are struggling with their energy costs are being invited to apply for a share of £40m in grant funding.

The money is being offered by the Energy Saving Trust and comes from the Energy Redress Scheme, which is funded through voluntary payments from companies that have breached rules laid down by the energy regulator Ofgem.

The trust said charities and community energy groups, including Community Interest Companies, co-operative societies and Community Benefit Societies, could apply for grants from one of four funding streams.

It said projects would be considered if they support households most at risk from cold homes and high energy bills, develop innovative products and services related to domestic energy use, or address carbon emissions reduction in England, Scotland and Wales.   

Of the four funding streams, the main fund offers grants of between £50,000 and £2m for schemes that support households in vulnerable situations and has £27m available. 

The small project fund is the same, except it offers grants of between £20,000 and £49,999 and offers £1m in total. 

The innovation fund has £6m available in grants of between £20,000 and £1m for projects that will develop innovative products or services to benefit households.

And the carbon emissions reduction fund offers £4m for projects that will reduce UK carbon emissions and empower households to reduce their carbon footprint, with grants of between £20,000 and £1m available.

The EST said that since 2018, the Energy Redress Scheme had awarded funding to more than 640 projects through 10 previous funding rounds. 

The deadline for applications for this funding round is 5pm on 20 March.

The EST said organisations must pre-register before applying and any that have not already done so should do this at least 10 working days before the application deadline so eligibility checks can be carried out.  

Graham Ayling, senior project manager at the 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.”

For more information and to apply, click here.