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BEIS opens bidding for first wave of Social Housing Decarbonisation Fund

1st September 2021

Registered providers of social housing in England can now apply for funding to improve the energy performance of their social homes.

Originally promised as part of the Conservative Party’s 2019 election manifesto, the Social Housing Decarbonisation Fund (SHFD) is set to be worth £3.8bn over the next 10 years to improve the energy performance of socially rented homes and will help towards meeting Net-Zero by 2050. Homes in England with an energy performance certificate (EPC) rating of D or below are eligible for the funding, with the aim of improving energy efficiency to meet an EPC Band C standard.

This will help the government achieve a number of its key objectives:

Fuel poverty

By improving the energy efficiency of buildings that are currently below EPC Band C tenant bills should not increase for the equivalent home warmth and it is therefore expected that energy bills will reduce.

Carbon reduction

Residential housing is responsible for 22% of all UK emissions (if emissions from consumed electricity are included), and social housing contributes 10% of this, therefore it is imperative that social landlords reduce their emissions if the UK is to meet its target of Net-Zero by 2050.

Green Economy

The SHFD also aims to support the green recovery in response to the economic impacts of Covid-19, helping support thousands of jobs.

Tenant Wellbeing

By delivering warmer, more energy-efficient homes, the comfort, health, and well-being of tenants will be improved.

The SHFD Wave 1 competition funding will be based upon a worst fit, fabric first, lowest regret approach which means that houses with the lowest starting EPC band will be eligible for the greatest spend, and the focus should be on measures that prevent heat loss whilst minimising the potential that any improvement will have to be replaced in the foreseeable future.

The funding is available to registered providers of social housing including private and local authority providers. All plans should demonstrate that the projects suggested can be completed by 31st January 2023.

Applications for Wave 1 will be accepted from 23rd August 2021 to 15th October 2021 and successful applicants will be announced early next year.

More information on the fund can be found here.