Success by Design: key considerations for designing grant schemes

What’s working well for local authorities

Learning from Innovate UK’s Net Zero Living Programme are already shaping the design of future funding schemes, so they become even easier for local authorities to access, unlock, and maximise grants for local transformation.

Targeted at those designing or refreshing grant schemes to support local authorities climate and net zero efforts, this report examines the different stages of design, from initial decisions around funding outcomes through to securing the legacy of a programme. It compares Net Zero Living with other related schemes, such as the Local Electric Vehicle Infrastructure (LEVI) Fund and the Energy Efficient Scotland: Area Based Schemes (EES:ABS).

For any funding scheme, early design decisions set the conditions for success later on. With this in mind, the report lays out five principles that should guide the development of any programme:

1. Flexibility – Places are different so schemes should focus on outcomes, rather than prescribing a single approach. This makes it easier for councils to be more responsive to local needs in the way they use funding and leads to a greater diversity of projects.
2. Allocation – Competitive bidding can be a huge time burden. Schemes should consider having multiple strands so more local authorities can access funding. They can also consider alternative mechanisms such as first-come-first-served allocations, or allocations based on local need.
3. Capacity – Local authorities need enough people with the right skillsets to deliver projects successfully. Funding officers proved game-changing for many councils but relies on senior buy-in and sufficient time for recruitment and onboarding.
4. Technical support – Councils value support that is timely, joined-up and matches their needs. Schemes should ensure projects can access light-touch one-to-one support, via email or phone, and that this support is sustained beyond application stages.
5. Scaling – Grant funding schemes want to have wider, positive benefits across a sector. Schemes should consider how insights from the projects will be shared. Thinking about this early means learnings can be gathered along the way and resources can be made available to help measure impact frequently and consistently.

The report summarises that schemes work best when they treat local authority needs as a whole system and consider the people, time, support and learnings that will be required, not just the capital funding.

Key findings

• Grant schemes that focus on outcomes, not fixed solutions, can better reflect local needs and support place-based innovation.
• Allocations can feel fairer than competitions, but councils new to bidding still need time and support to develop strong, viable plans.
• Schemes that set impact metrics early can make it easier to evidence outcomes, share learning, and support future investment decisions.