The government has awarded £1.8 billion through Social Housing Decarbonisation Fund (SHDF) and Public Sector Decarbonisation Scheme (PSDS) to upgrade social homes and public buildings.
More than 115,000 homes across England will get energy-efficiency upgrades – the Social Housing Decarbonisation Fund and Home Upgrade Grant are collectively worth £1.4 billion, which will fund measures ranging from loft insulation to new windows. An additional £1.1 billion in match funding for social housing provided by local authorities, providers of social housing and charities will bring the total investment to £2.5 billion to upgrade social and private homes in England.
The money will go towards improvements to vulnerable households and off-gas grid homes with an EPC rating of D or below and could save tenants between £220 and £400 a year on energy bills. The funding will be rolled out from April 2023 to upgrade homes over the next 2 years.
A further £409 million has been granted through the Public Sector Decarbonisation Scheme to help public sector buildings such as schools and hospitals drive down their carbon emissions. Upgraded heating systems, powered by cleaner, cheaper, renewable energy, will reduce the use of fossil fuels exposed to volatile global energy prices – supporting thousands of jobs and saving taxpayers hundreds of millions of pounds. Delivered by Salix Finance, the organisations to receive funding include Adur and Worthing Councils, Salisbury NHS Foundation Trust, Northumbria University and Greater Manchester Academies Trust.
Secretary of State Grant Shapps said:
We know this is a difficult time for families, which is why the government is covered around half a typical household’s energy bill this winter.
This is a huge investment that will help households save hundreds on energy bills and see them heat their homes for less, and stay warm for longer.
Not only this but the funding is also a huge boost for job creation and economic growth, opening up new and exciting opportunities across the UK’s ever-expanding green sector.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said:
The UK is truly a world-leader when it comes to reducing carbon emissions and the progress we’ve made over the last decade has been remarkable. But we can’t rest on our laurels and must continue to drive forward progress, setting a standard for other countries to follow.
Reaching net zero means considerable action from the public sector as well as private sector. Through the Public Sector Decarbonisation Scheme funding allocation announced today, we are empowering public bodies to save the taxpayer hundreds of millions while packing a punch on our ambitious and necessary climate goals.
Salix Finance Chief Executive Annie Shepperd OBE, said:
There is a huge amount of passion and expertise in the green energy sector, and Salix is proud to be supporting the hundreds of decarbonisation projects that have been made possible through the Public Sector Decarbonisation Scheme. Each one represents the best evidence of government and public bodies working together to achieve great things.
Emma Pinchbeck, Chief Executive of Energy UK, said:
Improving the energy efficiency of Britain’s draughty homes and buildings is the best way to cut energy bills permanently, while also boosting the UK’s energy security and reducing carbon emissions.
Today’s announcement will rightly prioritise those who need support the most like low- income households, social housing and public buildings.
Industry will work with government to build on these vital schemes and to remove any barriers that prevent households and businesses from saving money on their bills by reducing heat loss and conserving energy.
