Funding opportunity now open through the Department of Agriculture, Environment and Rural Affairs (DAERA) under the Rural Micro Capital Grant Scheme (RMCGS) 2026/27
The scheme offers grants between £500 and £2,500 for rural community-led and voluntary organisations working to tackle poverty, social isolation, and improve community wellbeing. Importantly, this year’s scheme places a strong emphasis on environmental improvements and energy efficiency measures that can help communities reduce costs while supporting sustainability and climate action.
Projects must focus on one of the following four themes:
- Energy Efficiency: E.g., upgrade of lighting, windows, doors, and insulation.
Environmental Improvement: may include the purchase of gardening equipment. - Modernisation (of existing building): structural work (requires a lease*), other examples include white goods, tables, chairs.
- Information Communication Technology: IT equipment including PC’s/Laptops, PA Systems.
- Health and Wellbeing: any capital item that aims to improve people’s wellbeing.
Projects with an environmental focus may include:
- Upgrading lighting to energy-efficient LED systems
- Insulation, draught proofing, windows and doors
- Light sensors or timers to reduce energy use
- Community gardening projects
- Purchase of gardening tools and tunnel kits
- Planting perennial trees, hedges, shrubs and flowers
- Improvements that reduce emissions and energy costs for community facilities
The scheme also supports projects linked to:
- Health and wellbeing
- ICT and digital inclusion
- Modernisation of community buildings and facilities
Funding can cover between 50% and 85% of eligible project costs, with groups contributing to a minimum 15% cash match. Total project costs cannot exceed £5,000.
This is a valuable opportunity for rural organisations to:
- Improve the sustainability and energy efficiency of community spaces
- Reduce long-term running costs
- Enhance biodiversity and environmental awareness locally
- Create healthier, greener, and more connected rural communities
Key dates:
- Applications open: Monday 18 May 2026
- Deadline: 12 midday on Monday 22 June 2026
Eligible organisations must be rural, not-for-profit, and able to demonstrate how the project will help address rural poverty and/or social isolation.
Full guidance and application details are available from the DAERA website:
Source: DAERA
