Contracts for Innovation: Cyber scale in critical sectors

Key Features

Organisations can apply for a share of up to £3.5 million inclusive of VAT, to develop, demonstrate and commercialise their cyber security solution in real end user environments within critical sector organisations.

Programme:     Innovate UK

Award:     Share of up to £3.5 million

Opens: 1st May 2026

Closes: 10th Jun 2026

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Grant Overview

Innovate UK are investing up to £3.5 million in this Contracts for Innovation competition. This is a single-phase competition.

Grant Scope

The aim of this competition is to support cyber security organisations in their growth efforts by demonstrating the operation and value of their innovative solutions in real world environments within critical sector organisations.

Projects must focus on one of the following critical sectors:

  • Chemicals
  • Communications
  • Emergency Services
  • Energy
  • Food
  • Health
  • Space
  • Transport
  • Water

Eligibility Criteria

To be eligible for this competition, projects must have total costs of no more than £300,000 (inclusive of VAT) and last for 12 months. Projects must start by 1st September 2026 and end by 31st August 2027.

Lead: To lead a project, organisations can be of any size. Working alone or with subcontracted skills or expertise of others from business, research organisations, research and technology organisations or the third party. Contacts will be awarded to single legal entity only. All project work and key deliverables must be completed by the applicant and carried out in the UK. Subcontractors can be used by they must be UK based and only used for specialist skills.

Grant Exclusions

The following projects cannot be funded:

  • Projects not in the original scop and duplicate someone else’s work
  • Projects that do not have an application for cyber security in critical sectors
  • Projects that cannot be demonstrated in relevant or operational environments
  • Projects focusing on developing frameworks and methodologies
  • Projects that consist of consultancy services

Grant Funding

Innovate UK have allocated up to £3.5 million (inclusive of VAT) to fund innovation projects. Contracts will be up to £300,000 (inclusive of VAT) for each project lasting 12 months. Innovate UK expect to fund up to 20 projects. Funding will be in the form of a contact.

The contract is completed at the end of the competition, and the successful organisation is expected to pursue commercialisation of their solution.

Value Added Tax (VAT)

You must select whether you are VAT registered before entering your eligible project costs. VAT is the responsibility of the invoicing business.

VAT registered

If you select you are VAT registered, you must enter your eligible project costs exclusive of VAT. As part of the application process VAT will be automatically calculated and added to your project cost total. Your total eligible project costs inclusive of VAT must not exceed £300,000.

Not VAT registered

If you select you are not VAT registered, you must enter your eligible project costs exclusive of VAT and no VAT will be added. It is not possible to increase total project costs to cover VAT later should you become VAT registered. Total project costs must not exceed £300,000.

Research and development (R&D)

Your application must have at least 50% of the contract value attributed directly and exclusively to R&D services, including solution exploration and design. R&D can also include prototyping and field-testing the product or service. This lets you incorporate the results of your exploration and design and demonstrate that you can produce in quantity to acceptable quality standards.

R&D does not include:

  • commercial development activities such as quantity production
  • supply to establish commercial viability or to recover R&D costs
  • integration, customisation or incremental adaptations and improvements to existing products or processes

For further information on this competition, please see full details.

Interested in applying for this competition?

Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.