Digital Transformation Grants

Made Smarter is the UK government's flagship programme supporting manufacturers to adopt industrial digital technologies (IDTs) including robotics, artificial intelligence, automation, additive manufacturing, and digital simulation. Launched as a pilot in the North West of England, the programme has expanded significantly and is now available across multiple English regions through local Growth Hubs.

The programme offers three core benefits. First, a funded digital technology review from an independent expert who assesses a manufacturer's current digital maturity and recommends a prioritised roadmap — this is provided free of charge. Second, subsidised leadership workshops on digital transformation strategy, helping owners and senior managers build the skills to lead change. Third, and most significantly, capital grants of up to 50% of qualifying technology costs, capped at £20,000 for SMEs in most regions. These grants cover hardware, software, and implementation costs for approved technologies. Some regions have higher caps or additional support for larger investments.

To be eligible, businesses must be a manufacturing SME (typically under 250 employees), based in an eligible region, and not have received equivalent support recently. Applications are made through the regional Made Smarter delivery partner — usually the local Growth Hub. Competition for grants can be high, and funding is allocated until regional budgets are exhausted, so early engagement is advised.

Cyber Essentials is the UK government's baseline cyber security certification scheme, backed by the National Cyber Security Centre (NCSC). It has two levels: Cyber Essentials (self-assessed) and Cyber Essentials Plus (independently verified by an accredited certification body). Holding Cyber Essentials Plus certification is mandatory for businesses supplying certain government contracts and demonstrates that basic defences against common cyber threats are in place.

The cost of Cyber Essentials Plus certification typically ranges from £1,500 to £5,000 depending on business size and complexity. A number of local growth programmes and UKSPF-funded schemes offer grants or vouchers to cover some or all of these costs for small businesses. These schemes are not nationally coordinated — availability depends on your local authority or Growth Hub. Contact your regional Growth Hub to ask whether a cyber security grant or voucher scheme is currently open in your area.

Beyond certification, the NCSC provides free tools and guidance through its Cyber Aware and Small Business Guide resources. The DCMS-funded Cyber Local programme funds regional cyber security clusters that provide subsidised assessments, training, and peer support for SMEs. NCSC's Exercise in a Box is a free online tool to help organisations test their cyber incident response.

Innovate UK is the UK's national innovation agency, part of UK Research and Innovation (UKRI). It funds innovation projects through competitive grant programmes, many of which have a significant digital technology component. Innovate UK funding is primarily aimed at businesses conducting genuine research and development or developing novel digital products, processes, or services — not for adoption of existing off-the-shelf technology.

Key Innovate UK funding streams relevant to digital transformation include:

• Smart Grants — open competitions for game-changing innovations in any technology area, including digital. Grants typically range from £25,000 to £500,000+ with 70% funding for small businesses and 60% for medium-sized businesses. Applications are assessed on innovation quality, commercial viability, and team capability.
• Innovate UK Edge — provides funded advisory support to innovative businesses, including help navigating funding opportunities, developing international partnerships, and scaling digital products.
• Catapult Centres — UKRI-funded technology innovation centres (including the Digital Catapult and Connected Places Catapult) offer funded collaboration programmes, technology access, and pilot project support for businesses developing digital technologies.
• UK-wide sector programmes — Innovate UK regularly launches competitions for specific sectors (health tech, agri-tech, creative industries, fintech) that include significant digital elements. These are published on the Innovate UK Funding Service portal.

Innovate UK grants are competitive and require a well-developed innovation proposition. First-time applicants benefit from attending Innovate UK's free webinars and reading successful project abstracts on their public database before applying.

Outside the national programmes, a substantial amount of digital support funding flows through local growth infrastructure. Many local authorities and Growth Hubs have used UK Shared Prosperity Fund (UKSPF) allocations to create local digital adoption grant or voucher schemes. These vary significantly by region but commonly offer grants of £1,000–£10,000 for SMEs to:

• Purchase digital equipment such as computers, tablets, point-of-sale systems, and networking hardware;
• Develop or improve their website and e-commerce capabilities;
• Access digital marketing support and social media management tools;
• Undertake digital skills training for business owners and staff;
• Implement cloud-based business management systems (accounting, CRM, stock management).

Because these schemes are locally administered, availability changes frequently as funding rounds open and close. Your local Growth Hub is the first port of call — Growth Hubs are publicly funded business support organisations covering all areas of England and have up-to-date knowledge of what grants are currently open in their area.

For charities and social enterprises seeking digital transformation funding, the NCVO and CAST (Centre for the Acceleration of Social Technology) provide digital support resources and occasionally facilitate funded programmes. Some UKSPF schemes are also open to voluntary sector organisations, not just private businesses.