Government Allocates £28.5 Million to Boost Video Game Companies

Government Allocates £28.5 Million to Boost Video Game Companies

Ministers have allocated £28.5 million aimed to boost video game companies across the UK. The funding will be channelled through the UK Games Fund, a body created in 2015 to support developers.

How the money will be used

The package is split across three grant tracks. Each track targets studios at different growth stages.

  • Entry Track — Grants of up to £20,000 for newly formed companies with limited track records.
  • Emergent Track — Grants of up to £100,000 for game prototyping and early development.
  • Expansion Track — Grants of up to £250,000 to finish games and help studios scale.

Scale of the UK games sector

The UK hosts more than 2,000 games companies. The industry has produced global hits such as Grand Theft Auto, Fable, PowerWash Simulator and No Man’s Sky.

UK players spend around £8.8 billion each year on games. The sector has strong clusters in Dundee, Leamington Spa and Guildford.

Announcement and festival support

The new funding was unveiled at the start of the 2026 London Games Festival. In addition, ministers pledged £1.5 million to the festival over the next three years.

Responses from officials and industry bodies

Creative industries minister Ian Murray said the investment will turbocharge developers’ careers. He added it will create jobs and stimulate economic growth across the country.

Dr Richard Wilson, CEO of the Independent Game Developers’ Association (TIGA), welcomed the move. He noted that access to finance has been a persistent challenge for many studios.

Industry groups have long called for more prototype and content funding. The increased grant support aims to help studios attract further investment and complete ambitious projects.

Filmogaz.com will follow how the funding affects studios and regional clusters in the months ahead.