The Department for Transport has confirmed nearly £1.1 million for nine small and medium‑sized enterprises to run live demonstrations through the Freight Innovation Fund. Announced on 3 December 2025, each recipient can receive up to £130,000, with delivery support from Connected Places Catapult.
Technologies proceeding to trial include lightweight trailers drawing on racing aerodynamics, wearable sensors to monitor port workers’ wellbeing, and electrically assisted cargo trailers designed to be hauled by cycles rather than vans. All trials will operate in real‑world settings.
The funding sits within the Accelerator model. Up to 15 SMEs first receive £20,000 each to design a trial; from that group, DfT and the Catapult then select a smaller cohort-nine in this round-for delivery awards of up to £130,000. The 15 design‑phase winners for round four were published on 22 September 2025.
Contracting is via Connected Places Catapult’s pre‑commercial Pilot & Trial route rather than a conventional grant, so awards fall outside Minimal Financial Assistance rules. SMEs are expected to provide 30% match funding-cash or in‑kind-with payments typically 60% at the start of trial delivery and 40% on completion.
DfT frames the programme around decarbonisation, reducing wastage, improving efficiency and upskilling. By running in operational environments, the trials are intended to create investible products that freight operators can adopt at pace if results are positive.
Early‑stage concepts can enter through the Transport Research and Innovation Grants scheme, which offers awards of up to £45,000. DfT notes that successful TRIG projects may progress to the Freight Innovation Fund for real‑world testing, creating a continuous pipeline from research to deployment.
According to Connected Places Catapult, since 2023 the Accelerator has supported 29 companies with £3.9 million, with 27 running real‑world trials. Companies supported have gone on to raise over £100 million of investment and create 44 jobs.
DfT cites freight’s contribution at around £127 billion to the UK economy, underscoring the commercial relevance of these demonstrations. Previous cohorts included work with major ports and parcel carriers, with some partners moving to commercial contracts after trials.
Policy timing matters for delivery teams. DfT says a new freight plan will be published in 2026, and its mode‑shift review confirms the rail and water freight revenue support schemes now run to 31 March 2026. Together, these measures provide a supportive backdrop as trials conclude and scale decisions are taken.
For recipients and partners, near‑term actions include confirming match‑funding evidence, securing test sites and data‑sharing agreements, completing safety and insurance checks for live environments, and setting baselines for emissions and operational KPIs before deployment under the Catapult contract model.