Small Business grants in 2026: Everything you need to know
Running a small business has never been more challenging, especially when it comes to managing costs and investing in growth. Government grants can provide valuable support to help small businesses like yours innovate, work towards your sustainability goals and navigate economic uncertainty.
Here’s a quick overview of all the recent and future changes to grants you need to know for 2026.
What is a grant
A grant is a sum of money awarded by the government to support specific business behaviours such as sustainable agricultural practices and energy efficient activities.
Unlike loans, grants usually don’t need to be repaid, but they often come with conditions on how the funds can be used and may involve applications, eligibility criteria or reporting requirements.
What existing grants are available to small business owners?
This blog covers changes and new upcoming grant initiatives in 2026. If you want to learn the basics about what grants are out there and whether you’re eligible, read our existing blog on our Advice Hub here.
Key changes to existing grant schemes to be aware of in 2026:
1. Workplace Charging Scheme
What’s the existing scheme
The WCS supports businesses installing EV charge points at their premises, covering up to 75% of purchase and installation costs. Claimants can receive funding of up to £500 per socket, capped at 40 sockets per site which are received as vouchers then redeemed by approved OZEV installers.
If you’re a single or multi-site small business owner looking for workplace charging solutions, find out more about how Pod can support your business fleet’s transition to Electric Vehicles here
Small businesses can also get support through EV infrastructure grants that aim to support the building of the wider-infrastructure a small business may need to support the installation of EV charge points. Claimants can receive up to £15,000, covering 75% of the cost of any work completed.
If you're a landlord, you might be eligible for similar charge point and infrastructure grants that provide either £350 or 75% of the cost to install an EV charger at your property as well as up to £30,000 or 75% of the cost to install supporting EV infrastructure.
Who’s it for
This grant is aimed at small businesses installing EV charge points at workplaces for staff or fleet vehicles who have dedicated off-street parking for employees or company vehicles.
What’s changing
The scheme has been extended until 31st March 2027.
Why
The WCS aims to accelerate EV adoption among businesses and reduce carbon emissions, supporting the UK’s net-zero targets by making workplace charging infrastructure more affordable. It also encourages small businesses to provide EV charging for employees and fleets, reducing range anxiety and promoting sustainable transport.
2. Research & Development Tax Relief
What’s the existing scheme
R&D Tax Relief allows UK businesses to claim tax credits or deductions for qualifying research and development activities. The rate of R&D expenditure credit under the merged RDEC scheme is 20% of taxable expenditure credit
Examples of Research & Development that qualify for this grant include:
Food & Drink: reformulating products to extend shelf life without preservatives, when the outcome wasn’t known in advance
Engineering/manufacturing: prototyping a component to achieve new tolerances; reducing scrap via a novel production process that required experimentation
Agriculture: developing or trialling new precision farming methods, irrigation systems, or nutrient delivery techniques where the outcome isn’t known in advance
Retail: developing sustainable, biodegradable, or active packaging that increases freshness
Who’s it for?
You can only claim this relief if you are a loss‑making R&D intensive small business. This is likely to include small businesses who want to undertake activities around research or development of new products or services
The scheme has recently expanded eligibility beyond first-time applicants and so even if you’ve had an application to R&D relief rejected before, you can now reapply for this pilot scheme.
What’s changing
From Spring 2026, HMRC will run a Targeted Advance Assurance Pilot. This will let UK small businesses request pre‑submission certainty on a specific R&D tax claim element e.g. project qualifying status, overseas costs, contracted‑out R&D, or PAYE/NIC cap exemption.
Why
The pilot is aimed at helping small businesses gain upfront clarity on specific elements of their R&D tax relief claims before they submit, providing certainty for business owners, reducing human error and deterring fraud.
3. Boiler Upgrade Scheme (BUS)
What’s the existing scheme
The BUS Provides grants of up to £7,500 per installation for air-source or ground-source heat pumps to help property owners replace fossil fuel heating systems with low-carbon alternatives.
Check your business’ eligibility and apply here
Who’s it for
The BUS is only open to small businesses in England and Wales looking to replace fossil fuel heating systems and aiming to improve energy efficiency and reduce carbon emissions.
If you’re aiming to improve your business’ energy efficiency, discover more tips on our industry-specific energy efficiency advice page
What’s changing
In the Autumn budget, the government announced that the Boiler Upgrade Scheme would be extended to 2028 having previously been ending in 2025.
The scheme is also expanding to include air-to-air heat pumps and heater batteries. Find out about the difference between air-source and air-to-air heat pumps here
Product and Installation standards have been relaxed to allow for multi-site installation, increasing the combined capacity limit to 300 kWth for shared ground loop system.
EPC requirements will be relaxed from April 2026: Properties will no longer need to meet insulation recommendations before applying for a heat pump grant. This change removes a major hurdle for small businesses who want to switch to low-carbon heating but cannot easily upgrade insulation.
The reimbursement process is changing from April 2026 - installers will now deduct the grant amount directly from the customer’s invoice at the point of sale. This means businesses will only pay the net cost after the grant, reducing upfront financial pressure.
Why
These changes are aiming to accelerate the UK’s net-zero transition by removing barriers for small businesses struggling with EPC compliance in older properties, making low-carbon heating more accessible. This includes encouraging the adoption of heat pumps and other renewable technologies by simplifying standards and reducing upfront costs.
4. The Industrial Energy Transformation Fund is now closed
What’s the existing scheme
The Industrial Energy Transformation Fund was designed to help energy-intensive industries cut carbon emissions and reduce energy costs by funding energy efficiency and low-carbon technology projects.
It covered projects such as feasibility studies, engineering design, and capital investment for technologies such as heat recovery systems, electrification, and hydrogen-ready equipment.
Who was it for?
The fund targeted energy-intensive businesses in sectors with high carbon footprints such as manufacturing, chemicals, food processing, and heavy industry
What’s changing
The scheme is now closed and there will be no new competition rounds however existing projects already awarded funding will continue to receive support.
No new applications are being accepted.
Why
The closure reflects a shift in government priorities toward broader green funding streams and net-zero transition programs. Funding is being redirected to initiatives that support small businesses and regional decarbonisation, as well as digital and energy efficiency upgrades.
New grant opportunities expected to be announced in the 2026 spring statement
The 2026 Spring statement will be delivered on 3rd March and this is usually the time of year when new grants and funding opportunities are announced
1. Digital & AI Adoption Grants
What’s the proposal
The government is expected to fund the SME Digital Adoption Taskforce initiatives proposed in its final report. This includes support for CRM, AI, and cloud tools in grant form to make UK small businesses digitally competitive.
Exact grant amounts are still to be confirmed but are expected to be announced in the Spring Budget 2026.
Who’s it for?
Small businesses across sectors looking to modernise operations, improve customer management and leverage AI for decision-making.
Why
The government are aiming to close the digital productivity gap between UK small businesses and global competitors by enabling the adoption of automation, AI-driven analytics, and cloud infrastructure for efficiency and growth.
2. Green & Net-Zero Investment Grants
What’s the proposal
The Government are aiming to expand their support for UK small businesses in the net-zero transition.
This includes a number of anticipated grants for energy-efficient equipment (heat pumps, solar PV), EV charging infrastructure, and low-carbon retrofit schemes aligned with industrial decarbonisation targets.
Who’s it for
Small businesses in manufacturing, retail, hospitality, and other sectors with high energy usage or sustainability goals.
Why
Green & Net-zero grants aim to accelerate industrial decarbonisation and help small businesses meet net-zero targets. Initiatives aim to reduce energy costs and carbon emissions through green technology adoption.
Funding details
TBC but likely announced in 2026 Spring Statement.
3. Regional & Local Growth Funding
What’s the proposal
Introduction of new funds such as the Local Growth Fund and Growth Mission Fund outlined in the June 2025 Spending Review. Spring Budget confirmation of UK-wide competitive grants for small businesses in designated regions is anticipated, starting April 2026.
Who’s it for?
Targeting small businesses in priority regions identified by the government (details expected in Spring Budget).
Why
Aiming to boost regional economies, create jobs and support levelling-up initiatives by encouraging investment in innovation and infrastructure outside major urban hubs.
Funding details
Funding to include £20m over ten years for each of the 75 towns and 275 trailblazers totalling £700m a year. Not all of this be for small businesses but there will be a mix of investment in people, place, infrastructure and business support.
As well as this, other regional funding opportunities may also be announced.
Next steps
To make the most of grant opportunities, small businesses should do the following:
1. Remember the date
Keep an eye out for the 2026 spring statement on 3rd March 2026 and other announcements in and around this date.
Make a note of your business’ key characteristics such as number of employees, energy consumption and revenues to make sure you know whether new announcements apply to your business.
2. Discover our sustainability page
If you’re a small business owner interested in green and sustainability grants, find out more about how EDF can help your business’ sustainability journey on our dedicated sustainability page.
3. Be inspired
Listen to our Small business retail sessions podcast series in partnership with Enterprise Nation.
Hear from fellow small business owners and EDF customers who have powered sustainable growth for their business.
