Second wave of Social Housing Decarbonisation Fund awards £778m for decarbonising social homes

22 March 2023

The Department for Energy Security and Net Zero (DESNZ) has today announced a total of £1.8bn to upgrade the energy efficiency of homes and public buildings through the Social Housing Decarbonisation Fund, Home Upgrade Grant and Public Sector Decarbonisation Scheme. An additional £1.1bn in match funding from social landlords brings the total investment in upgrading social and private homes in England to £2.5bn. 

The money will go towards energy-saving measures ranging from loft insulation to new windows, improvements for vulnerable households and off-gas grid homes with an energy efficiency rating of EPC D or worse. DESNZ says this could save residents £220-£400 a year on energy bills.

The funding will be rolled out from April 2023 over the next two years.

The £778m awarded through the Social Housing Decarbonisation Fund demonstrates the commitment social landlords have to the vital work of retrofitting their homes. This will not only help the country meet its net zero targets, but will make residents homes more energy efficient, comfortable and affordable to heat.

Long term funding certainty is key for housing associations to deliver on net zero. Previous research by the NHF shows that the full cost of decarbonising existing housing association homes will be at least at least an additional £36bn, on top of what the sector has already committed to making homes zero carbon. The Social Housing Decarbonisation Fund, as well as additional funding committed in the Autumn Statement, is welcomed by the sector and we look forward to working with the government to develop this.

More detail can be found in the press release on GOV.UK.

The full list of successful bids can be found on GOV.UK.

Last year, NHF Chief Executive Kate Henderson shared insights and photographs from several housing associations working to decarbonise their residents’ homes using the first wave of the funding from the Social Housing Decarbonisation Fund.

Find out more

Who to speak to

Kevin Garvey, Head of Member Relations