A total of £1.8bn has been awarded through multiple grant schemes such as the Social Housing Decarbonisation Fund to improve energy efficiency across the UK
The Social Housing Decarbonisation Fund and Home Upgrade Grant are collectively worth £1.4bn, which will be used to fund energy-saving measures ranging from loft insulation to new windows. A Public Sector Decarbonisation Scheme will focus on optimising the energy efficiency of public buildings.
It is estimated that around 115,000 homes across England will benefit from the energy efficiency measures.
Additional match funding for social housing via local authorities, charities and social housing providers will bring the total investment to £2.5bn to upgrade social and private homes in England.
The move hopes to bolster energy efficiency and employment
Vulnerable households and off-gas grid homes with an EPC rating of D or below will be the first targets of the funding, with improved energy efficiency creating potential savings of £220 and £400 a year on energy bills for tenants.
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 government has also expressed an aim to support around 20,000 jobs in the construction and home retrofit sectors with the increased drive in delivering energy efficient social housing.
The Home Upgrade Grant will also support over 25,000 low-income homes across England by installing energy efficiency measures and low carbon heating. These decarbonisation efforts are expected to support 7,000 jobs.
“Saving taxpayer money whilst ensuring energy independence”
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.
Lord Callanan, minister for energy efficiency and green finance, said:
“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.”
The funding will be rolled out from April 2023 to upgrade homes over the next 2 years.
Public sector bodies will receive over £400m to reduce carbon emissions
This funding will be delivered through the Public Sector Decarbonisation Scheme, which provides grants to public sector bodies to fund low carbon heating, renewable energy and energy efficiency measures such as heat pumps, solar panels and insulation. The scheme is being delivered on behalf of the government by Salix Finance.
Some of the 144 organisations set to receive funding include Adur and Worthing Councils, Salisbury NHS Foundation Trust, Northumbria University, Greater Manchester Academies Trust and many other recipients across England looking to improve the sustainability of their buildings.
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.”
Decarbonising the public sector with low carbon heating and energy efficiency measures is also expected to save the public sector an estimated £650m per year on average to 2037.
