£1.8 billion awarded to boost energy efficiency and cut emissions of homes and public buildings across England - GOV.UK
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Government awards £1.8 billion through Social Housing Decarbonisation Fund, Home Upgrade Grant and Public Sector Decarbonisation Scheme to upgrade social homes and public buildings. From:
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Published
22 March 2023
This was published under the
2022 to 2024 Sunak Conservative government
£409 million also awarded to reduce carbon emissions of hospitals, schools, museums, universities and other public sector buildings across 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. These schemes could also support around 20,000 jobs in the construction and home retrofit sectors, helping to deliver on our promise to grow the economy and create better paid jobs, whilst supporting families across the country. On top of this, 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. Secretary of State Grant Shapps said:
We know this is a difficult time for families, which is why the government is covering 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. 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. Energy cutting and cost saving measures provided through the schemes include exterior wall insulation, cavity wall insulation, loft insulation, new windows and doors and draft proofing measures, as well as heat pumps and solar panel installation. The schemes form part of the government’s commitment to reduce overall UK energy demand by 15% by 2030, as well as supporting the ambition for the UK to move towards greater energy independence. The Home Upgrade Grant is supporting over 25,000 low-income homes across England by installing energy efficiency measures and low carbon heating. Those being aided are typically the worst quality, off-grid homes most in need of upgrading, with an
EPC
rating of D to G. Improving these homes comes with the added benefit of supporting 7,000 jobs. Aliye Galloway lives in social housing in Northamptonshire with her partner and 5 children. Through the Social Housing Decarbonisation Fund her home was fitted with an air source heat pump, solar panels and more efficient doors and windows. She said that even with the recent energy price rises, the family’s energy bills are significantly lower since the work has been completed. Aliye explained:
Already we are seeing a massive change with our energy consumption and energy costs and already that’s having a positive impact on us a family. We are very happy with how it all works. We would recommend it to any tenant who is approached by the scheme. It will have a huge positive outcome. It’s supposed to be more eco-friendly too so I’m very happy we managed to get rid of the gas to be honest. We are literally just electric now. We are going to massively save. Even though the prices have gone up, we are still putting in less than we were before. 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. The government has also announced today that over £400 million has been allocated to public sector bodies across England to help reduce their carbon emissions. 144 public sector organisations responsible for hospitals, schools, leisure centres, museums and universities will benefit from this support. The Scheme aims to support the government’s commitment to reduce emissions from public sector buildings by 75% by 2037, compared to 2017 levels, as first set out in the 2021 Heat and Buildings Strategy. The commitment follows significant progress the UK has already made towards reaching net zero - cutting all emissions by 48% between 1990 and 2021, which is faster than any other G7 country. Decarbonising the public sector with low carbon heating and energy efficiency measures is also expected to save the public sector an estimated £650 million per year on average to 2037. 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.
This is a continuation of the government’s award-winning Modern Energy Partners programme which has worked with 42 sites to explore different avenues for decarbonisation. Adam Scorer, Chief Executive of National Energy Action (NEA) said:
This vital investment is desperately needed. Low-income households, in the least efficient homes, are being hardest hit by the energy crisis and are having to pay hundreds of pounds more than the typical household just to heat and power their home to a minimum reasonable standard. As well as helping to abate the impact of high energy bills for thousands more households, we hope the investment can lessen some of the physical and mental health impacts for people unable to keep warm at home. Both the Social Housing Decarbonisation Fund and Home Upgrade Grant can also help us make progress with our legal fuel poverty targets, helping millions more of the poorest households, who are massively exposed to high energy prices and pay an ‘energy inefficiency premium’ just to stay warm and safe at home. Tracy Harrison, Chief Executive, Northern Housing Consortium said:
Retrofitting homes towards net zero is a key priority for councils and housing associations across the North. Our members want to continue to scale their activity to support the development of the supply chain, and to deliver good, green jobs. We were delighted to see even more ambitious partnership bids submitted to this Wave – an approach which we hope to see followed through in delivery. But most importantly, these successful projects will help create warmer homes and improve the physical and mental health of people in our communities. Carol Matthews CBE, Chief Executive of The Riverside Group said:
Cllr Helen Silman, Worthing Council’s Cabinet Member for Climate Emergency, said:
The decarbonisation of heating is key to our goal of being a carbon neutral council by 2030, and a challenge we’ll continue to rise to as we look ahead to meeting our 2045 target of a carbon-neutral Worthing. Cristina Calleja, Sustainability Manager at South Warwickshire University Foundation Trust, said:
Our estates, capital and sustainability teams worked very hard to put together an innovative and detailed grant application, which will reduce our organisation’s carbon emissions and benefit our staff, patients and visitors. Therefore, we are extremely delighted to have received this grant that demonstrates our commitment to climate change at the Trust. Canterbury City Council’s Director of Strategy and Improvement, Peter Davies, said:
We are really pleased to have secured a grant from the Public Sector Decarbonisation Scheme, which will allow us to significantly reduce emissions at Kingsmead Leisure Centre. By their very nature, leisure centres are energy intensive buildings and we have been conscious of the need to put in place measures to lessen the impact of Kingsmead on the environment. This grant will enable us to do a huge amount using some of the latest technology. Full regional breakdown for Social Housing Decarbonisation Fund Wave 2.1:
West Midlands: £93.5 million
East Midlands: £74.7 million
London: £131.5 million
North West: £105.3 million
South West: £80.2 million
South East: £128.9 million
East of England: £83.6 million
North East: £29.3 million
Yorkshire & the Humber: £50 million
See the
Full regional breakdown for Home Upgrade Grant Phase 2:
West Midlands: £152.7 million
East Midlands: £3.2 million
London: £12 million
North West: £83.8 million
South West: £77.5 million
South East: £161.2 million
East of England: £23.5 million
North East: £28.5 million
Yorkshire & the Humber: £41.1 million
See a
. Phase 3 of the Public Sector Decarbonisation Scheme is investing £1.425 billion over the financial years 2022-2023 to 2024-2025. The first Phase 3 application window, Phase 3a, opened on 6 October 2021 and closed on 3 November 2021. £613 million was awarded to 231 grant recipients through Phase 3a. The second application window, Phase 3b, opened on 12 October 2022 and closed on 31 October 2022. We have already made available over £1 billion through Phases 1 and 2 of the Public Sector Decarbonisation Scheme over 2020-2021 and 2021-2022. Phase 1 of the scheme was part of the Chancellor’s ‘Plan for Jobs 2020’ commitment to support the UK’s economic recovery from COVID-19, supporting up to 30,000 jobs in the low carbon and energy efficiency sectors. Adur and Worthing Councils have been awarded almost £3 million to support the decarbonisation of 6 public buildings, including the Grade II listed Worthing Museum and the Connaught Theatre, one of the oldest cinemas in the UK. Each building will be connected to the existing Worthing Heat Network, which uses a pump system to turn heat from wastewater in the local sewer into sustainable energy
Salisbury NHS Foundation Trust, which has been granted £10 million to upgrade various buildings at Salisbury District Hospital, including the Spinal Treatment Centre and the hospital leisure centre. Gas fired boilers will be replaced with heat pumps and the energy efficiency of the buildings will be improved
Northumbria University is benefitting from almost £2 million to decarbonise its library, the reception buildings, and the Sports Centre at Coach Lane East campus
Canterbury City Council is receiving more than £600,000 to install an air source heat pump and solar panels in Kingsmead Leisure Centre
Greater Manchester Academies Trust has been awarded over £1 million to install heat pumps, solar panels, and loft insulation at secondary school Manchester Communication Academy
South Warwickshire University NHS Foundation Trust has been awarded over £8 million to decarbonise the heating of 21 buildings across Warwick Hospital and Royal Leamington Spa Rehabilitation Hospital
North East: £7,636,389
Yorkshire and the Humber: £21,737,561
North West: £44,555,899
East Midlands: £18,112,366
West Midlands: £88,371,731
East of England: £14,677,719
South East: £108,324,556
South West: £33,450,968
Greater London: £44,280,137
Across regions: £26,688,898
Scotland: £1,221,871
Find
. Modern Energy Partnerships: Our Modern Energy Partnerships guidance includes advice on
, which allows input of energy consumption data so decarbonisation interventions can be assessed. There is also
to help public sector organisations consider how their overall decarbonisation solution could look and role that technology can play.
This guidance will be instrumental in helping public sector organisations build applications for future phases of the Public Sector Decarbonisation Scheme as well as maximise cost and energy savings from their decarbonisation projects. The following links open in a new tab
Published 22 March 2023
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