DAERA Environment Fund: Water Quality Improvement Strand 2025/26

Overview

The Challenge Fund is an environmental funding programme. It was established in 2011 to enable groups from the community and voluntary sector deliver a range of environmental projects. The programme is very competitive and has been oversubscribed since 2011. Whilst applications may comply generally with the objectives of the programme, they are not guaranteed to receive funding.

Environment Fund – Water Quality Improvement Strand

This is a grant competition for not-for-profit organisations and councils, funding projects to deliver water quality improvements, help connect people with the water environment and bring about behaviour change.

Eligible projects need to have a clear objective to do at least one of the below;

• Improve the water body status
• Raise awareness of water pressures in the community
• Encourage behaviour change in the local community

Key Funding Areas 

Connecting people with the aquatic environment to achieve behavioural change

• Volunteering, including the establishment of new local groups or greater public involvement within existing groups, to improve the water environment e.g. adopt a “local water body”, host a river day.
• Community engagement and citizen science for aquatic/ marine conservation, protection and improvement e.g. Anglers’ Riverfly Monitoring Initiative, Invasive non-native species identification and training, outfall safari training, litter picking (can include purchase of specialist equipment).
• Engaging and empowering the community to support to increase understanding of the water environment or develop citizen science skills, such as species identification or water quality monitoring, water conservation and development of digital/social media and webinars that tie in with behavioural change and raise awareness of key issues.
• Local Pollution Prevention campaigns e.g. drainage misconnections, workshops, signage, leaflets.

Conservation, Protection and Restoration of our Aquatic environments:

• Creation, protection or restoration of aquatic, coastal or marine habitat.
• Creation of blue and associated green spaces.
• Recovery of threatened aquatic and marine species.
• Improving and maintaining fish passage.
• Tackling invasive non-native species e.g. removal and biosecurity planning.
• Preventing, removing or cleaning up pollution e.g. litter picking, wetlands, buffer zones, awareness raising.
• Water quality surveying and monitoring e.g. Anglers’ Riverfly Monitoring Initiative, baseline surveys and post project surveys.
• The development of restoration plans.
• Action that aids the improvement of water quality e.g. tackling diffuse pollution.

Nature-based solutions, particularly for climate change mitigation and adaptation

These projects should seek to work sustainably with the water environment to address socio-environmental issues, particularly in reference to climate change and flood risk management.

For example, projects may include, but are not limited to, action contributing to:

• Peatland and other wetland restoration to reduce pollution and flooding.
• Natural flood management e.g. silt trapping including woody debris to drains, swales, attenuation ponds, measures to prevent soil erosion and nutrient run off.
• Creating, enhancing or connecting blue and green infrastructure.
• River or waterways bank stabilization and in-stream improvements.
• Riparian management / tree planting, planting of native species/hedgerows, de-tunnelling, etc.

Who can apply?

The grant scheme is open to a range of groups and organisations, including community groups, schools, Rivers Trusts, environmental charities, other interested not-for-profit organisations and local councils.

The organisation applying for the grant may have partners which are not eligible to apply directly or may sub-contract provision of services to such organisations.

Supporting information to confirm the status and financial standing of the organisation will be required.

Applicants should also either already be registered on the government funding database https://govfunding.nics.gov.uk/ or be in the process of registering.

How much can they offer?

The Water Quality Improvement strand of the Environment Fund budget is limited.

For the Environment Fund – Water Quality Strand funding will cover up to 85 % of total project cost. The minimum that can be awarded is £5,000 and the maximum is £30,000 (subject to budget approval). Payment of grant will be in arrears unless there are exceptional circumstances requiring a degree of payment upfront.

The creation of buildings is not eligible.

Applications may be refused or offered at a lower level of funding, if there are concerns about value for money, risks in delivering the outputs or insufficient budget.

Match Funding

Grant Applicants must be able to demonstrate that sufficient match funding is available to complete their project. This can be taken as contributions given in-kind, including labour or donations of materials. 

When calculating the value of volunteer time please use the following standard rates below (as published by the Heritage Lottery Fund): 

• Unskilled tasks can be costed at up to £50 per day. 
• Skilled tasks can be costed at up to £150 per day.
• Professional tasks can be costed at up to £350 per day. 

Eligible Costs

Overhead items relating to the Project which may be included in the calculation are:

• Rent of building and plant.
• Utilities such as water and electricity. 
• Maintenance, public liability insurance and office equipment or supplies. 
• Communication and postage costs

Overheads, administration and on-costs should be no more than 20% of direct costs. See Guidance for further details.