Current policy and funding

The policy framework for decarbonising our homes is emerging rapidly, along with details of the funding available to support it. Here, we summarise the key pieces of policy currently guiding decarbonisation, which will be kept up to date as the environment evolves. 

Government strategy

Heat and buildings strategy

The Heat and buildings strategy sets out how the government plans to eliminate virtually all emissions arising from heating, cooling and energy use in our buildings.

Net Zero Strategy

This strategy sets out policies and proposals for decarbonising all sectors of the UK economy to meet our net zero target by 2050.

The Seventh Carbon Budget - briefing

The most comprehensive advice the Climate Change Committee has produced yet. The UK’s Seventh Carbon Budget is a blueprint for a fully decarbonised UK. It built on their net zero advice, recommends tough interim carbon reduction targets and outlines sector-specific decarbonisation trajectories.

Based on this advice, the government has set out its proposed level of emissions reductions for the period 2038-2043, at ~87% emissions. A delivery plan setting out how Carbon Budget 7 will be met will be published as soon as is reasonably practical after Parliament has approved the budget. This will build on the government’s Carbon Budget and Growth Delivery Plan, published in October 2025.

Clean Power 2030 Action Plan 

The Clean Power 2030 Action Plan sets out the government’s intention to decarbonise Britain’s energy supply, and reduce reliance on fossil fuels.   

This is supported by the Local Power Plan, published in February 2026, which sets out how the government will support local and community clean energy initiatives, alongside the Pride in Place programme and Community Right to Buy.  

Funding opportunities

Warm Homes: Social Housing Fund (formerly Social Housing Decarbonisation Fund) Wave 3

The Warm Homes: Social Housing Fund supports social housing providers to insulate social homes, improve energy efficiency and upgrade heating systems. Applications to the fund closed on 25 November 2024 and successful applications will be announced in early 2025. Organisations will have until 30 September 2028 to complete works.

Heat network funding

• Green Heat Network Fund (GHNF): guidance on how to apply. Capital grant support is available for the development of new and existing low and zero-carbon heat networks. Round 11 closed in May 2026, and Round 12 is provisionally scheduled to open later in 2026. 
• Apply for the Heat Network Efficiency Scheme (HNES).
  The Heat Network Efficiency Scheme supports performance improvements to existing district heating or communal heating projects. Round 12 closed in May 2026, and DESNZ will be releasing details on Round 13 shortly. 

VAT reliefs for decarbonisation works

VAT on energy saving materials will be reduced from 5% to 0% from April 2022 to April 2027.

Electric vehicle (EV) infrastructure

There are a range of funding opportunities available for housing associations who wish to install EV infrastructure in their residents' homes.

• Grants for landlords to install EV chargepoints and supporting infrastructure in rental and leasehold properties.
• Local Electric Vehicle Infrastructure (LEVI) capital: This is capital allocated to individual local authorities. However housing associations can contact their local authority to ask for the EV charging needs of their housing sites and residents to be considered when EV chargepoint locations and power ratings are planned. 

Flood and coastal erosion risk management funding

Find out more

For more information, including about workplace grants, and grants available to residents directly, please contact me.

Additional funding for solar and electrification

The government has announced an additional £100m of funding to support solar PV and battery storage for social housing. This was announced on 21 April 2026 as part a plan to uncouple the price of electricity from volatile gas prices, ensuring that cheaper clean power passes directly to consumers. Find out more about this.