Social Housing Decarbonisation Fund opens for applications

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Registered social housing providers are able to apply for funding to help make homes warmer and more energy efficient as the first wave of Social Housing Decarbonisation Fund opens today.

The Social Housing Decarbonisation Fund will upgrade a significant amount of social housing stock to an Energy Performance Certificate rating of C.

Minister for Business, Energy and Corporate Responsibility, Lord Callanan, commented: “Today’s announcement is a vital step forward in eradicating UK fuel poverty and improving the lives and homes of low-income households, all while creating new work for local plumbers, builders and tradespeople who will be building homes fit for our greener future.

“With a real appetite among councils and housing associations to make their homes cheaper to heat and warmer to live in, this investment is putting the power in the hands of the people who know their communities best, allowing the right decisions to be made for each home they manage while ensuring the very best for their tenants and the environment.”

Wave 1 of The Social Housing Decarbonisation Fund follows an earlier demonstrator phase launched in March 2021, which awarded £62 million to projects across England and Scotland which will look to upgrade c. 2,300 socially rented homes to demonstrate innovative approaches to retrofitting social housing at scale, using a whole house approach.

Through this first wave of funding, up to 38,000 of the UK’s worst energy-performing social housing properties with energy performance certificate (EPC) ratings of D or below in total will have the chance to receive energy efficiency upgrades, including installation of insulation and more energy efficient doors, windows and heating systems.

This investment is set to help tenants save around £170 per year on energy bills, while making their homes warmer and reducing carbon emissions.

The government has committed to a £3.8 billion Social Housing Decarbonisation Fund over a 10-year period to improve the energy performance of social rented homes, on the pathway to Net Zero 2050.

Taken together the funding is set to ensure that the government is achieving its aspiration to ensure as many homes as possible reach EPC Band C or above by 2035 in a way that is ‘practical, cost-effective, and affordable.’

This announcement comes as emissions from domestic properties currently account for around 20% of the UK’s carbon output.

The SHDF Wave 1 Competition has opened, running for 8 weeks until 15 October 2021.

Successful applicants will be announced in early 2022.

More information about the Social Housing Decarbonisation Fund and how to apply is available on the UK Government website.