In March 2025 the Government announced that it would reform the UK’s approach to modernising the design of UK airspace by introducing the UK Airspace Design Service (UKADS) and a UK Airspace Design Support Fund.
The Support Fund provides up to a maximum of £1 million funding to eligible applicants sponsoring, independently of the UKADS, airspace change proposals that enable airspace modernisation.
It is funded through the Airspace Design Charge, established in May 2026 through a modification to the air traffic services licence held by NERL (NATS (En Route) plc).
Eligibility criteria and rules
The Support Fund Rules and Eligibility Criteria are set by the Department for Transport and establish how the Support Fund operates, including:
- who may apply to the Support Fund and for what costs; and
- the requirements relating to the Support Fund processes, including the requirement to set up the application process, assess applications, and pay out funding.
Application and assessment
The CAA processes, assesses and decides upon Support Fund applications. NERL distribute the funds to recipients as directed by the CAA.
The CAA has published CAP 3231 UK Airspace Design Support Fund Application Process and Guidance describing the process that the CAA has set up in its role as the Support Fund decision-maker to manage the Support Fund in accordance with the fund rules.
CAP 3231 also provides guidance to applicants on how to complete the application and reporting forms.
Application form and reporting templates
All applications, reports and correspondence with the CAA regarding the Support Fund should be directed to airspace.modernisation@caa.co.uk
Applications and reports should be submitted using the following forms in accordance with the guidance in CAP 3231
Support Fund applications and CAA’s air navigation functions
The CAA’s role in assessing and deciding upon the eligibility of applications to the Support Fund is separate from its duties under section70 of the Transport Act 2000.
Any CAA decision to award or withhold funding is made solely on the CAA’s assessment of the funding application and the submitted evidence against the eligibility criteria established within the fund rules. It does not relate to an assessment of the likelihood of success of any airspace change proposal from the perspective of the CAA’s CAP 1616 airspace change process.
Payment of funding
Any funding awarded by the CAA is paid retrospectively after the relevant work has been completed and the costs incurred.
The CAA will issue a final decision on the value of any funding to be awarded after reviewing the applicant’s completion report and submitted evidence against the eligibility requirements established in the fund rules. The CAA will then direct NERL to distribute the funds to recipients.
Fund oversight
The CAA reports to the Joint Airspace Modernisation Programme Board on the use and operation of the Support Fund.
Successful applicants
The CAA has published a notice of the Support Fund on the UK Subsidy Database, where details of any allocated funding will also be published.
Duration of the Support Fund
The Support Fund will be subject to regular review by the Department for Transport and is expected to terminate, with no further applications accepted, six months before the end of the NR28 price control period, or 31 December 2032 (whichever is earliest).
If, in the future, the UKADS becomes responsible for airspace redesign within another UK region, no further applications will be eligible from that region in accordance with the eligibility criteria established in the fund rules. The CAA will make transitional arrangements with affected applicants to wind down access to the Support Fund.