UK companies can now apply for up to £14.7 million in funding from the UK Space Agency.
This will open up new opportunities to develop cutting-edge space technology and strengthen the UK’s industrial capabilities.
The funding is available through the European Space Agency’s (ESA) General Support Technology Program (GSTP), the flagship program for maturing new space technologies from early-stage research to flight-ready demonstrations.
Sir David Willetts, Director General of the UK Space Agency, said: “We are very pleased to be able to provide further funding for new technologies across the space sector.
“The evidence shows that this program will provide a significant boost to individual businesses and the economy as a whole.”
Funding brings significant economic and technological benefits
The call is based on strong industry demand and emerging evidence that participation in the UK’s General Support Technology Program (GSTP) is delivering significant economic and technological benefits.
The UK has been part of the program for more than 30 years and pledged £46 million at ESA’s 2025 Ministerial Council meeting to support organizations that help develop vital indigenous space technology, compete internationally and secure future jobs from ESA and the commercial market.
An impact analysis by the UK Space Agency of 44 GSTP projects (31% of funding between 2019 and 2024) found significant benefits for UK industry, particularly SMEs.
The sample also generated an additional income of £24.6m, a 116% return on public investment and created 113 new jobs, the majority of which were within small and medium-sized enterprises. Many participating companies also attracted private investment.
UK space technology is competing on an international scale
GSTP funding helps UK companies scale up and compete internationally with advanced space technology.
Bristol-based small business iCOMAT used the program to demonstrate an advanced composite manufacturing process for spacecraft structures.
The company developed a prototype that was 25% lighter and 30% stronger than previous designs, increasing its reliability, attracting customers and enabling £18m of private investment.
Space Forge also benefited from GSTP support by developing a reusable reentry heat shield, a key technology for returning high-value materials produced in space.
The funding enabled design, prototyping and initial testing ahead of flight testing, enabling the company to secure £12.3m in private investment, build out its UK supply chain and create 20 skilled jobs.
Collaborations and partnerships at the heart of UK space technology
The analysis also shows that GSTP is increasing cooperation across the UK space sector.
Almost three-quarters (73%) of organizations have formed new partnerships through the program, including valuable connections between small businesses and large systems integrators.
Additionally, the level of innovation was consistently high, with 90% of SME-led projects developing new technologies and 72% identifying applications beyond the space sector.
Overall, the program supports 23 UK-specific space technologies, some of which are expected to be European or world firsts.
Maximize value and capabilities
Demand for GSTP funding is increasing rapidly, with the UK’s previous allocation fully committed ahead of schedule, with no new placements from March 2024 onwards.
The new £7m raise is part of a wider £14.7m package and is expected to be strongly welcomed by the industry. The updated rules introduce joint funding requirements and a fixed value framework to maximize value for money while continuing to support strategically important capabilities.
In parallel, a separate call will be made for UK organizations to bid for a fully funded ESA space technology contract worth £7.7 million.
These opportunities are open to organizations of all sizes, including universities and space companies, and will help widen participation and secure high-value ESA work for the UK.
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