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GamesIndustry.biz
GamesIndustry.biz
· 4 months, 1 week ago • Isobel Sims

Funding sources for UK studios in 2026: what's on offer, and the requirements developers need to be aware of

Briefing

The article is a practical map of the funding landscape for UK game studios in 2026/27, with the main takeaway that there are still viable ways to finance development even if publishers are cautious. The most immediately useful route is Video Games Expenditure Credit (VGEC), which can return 34% of qualifying expenditure and works out to about 25.5% of eligible costs each financial year, provided the studio is UK-registered and the game meets the UK use/public access/cultural test requirements.

For older projects, Video Games Tax Relief still exists for games started before 1 April 2025, but it’s being phased out and all projects move to VGEC from 1 April 2027. Beyond tax support, the article points to grants as the next tier up: Epic MegaGrants, the UK Games Fund, UK Global Screen Fund support for narrative and release marketing/localisation, and UKRI-backed R&D schemes. The UK Games Fund budget was increased to £28.5 million as of 13 April 2026, with grants ranging from £20,000 to £250,000 depending on track.

The catch is that funding rarely comes without strings. Grants often restrict spend categories and require reporting, which can eat into the money if you need accountants or extra admin. Incubators and accelerators can be valuable for early-stage teams, but they’re selective and may focus on first-time founders, graduates, or studios with a specific platform fit, like Roblox’s Jumpstart and 6-month incubator programmes.

The article’s broader point is that studios should think in terms of funding stacks, not single sources. That means checking IP ownership,...

“The best grant would be non-recoupable and non-exclusive... while you retain full ownership of the IP”

— Article author · Describing the ideal grant terms studios should look for
At a glance
what
UK studios can use VGEC, grants, incubators, VC, angel investment, crowdfunding, and some legacy tax relief routes.
who
UK Games Fund, UK Global Screen Fund, UKRI/Innovate UK, Epic Games, Roblox, Sony, HMRC.
when
VGEC applies in 2026/27; Video Games Tax Relief ends for new projects and all projects move to VGEC from 1 April 2027; UK Games Fund budget increase noted on 13 April 2026.
impact
VGEC can return about 25.5% of eligible costs; UK Games Fund grants range from £20,000 to £250,000; UK Global Screen Fund offers £50,000 to £200,000 for narrative games.
Signal Mixed

More funding options, but lots of caveats and constraints.

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