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. 

NHF reports

Decarbonisation: a guide for housing associations

Our guide sets out guiding principles for decarbonising housing association homes. It explains how we can retrofit existing social homes so they are more comfortable, cheaper to live in and emit no carbon.

Find out more about decarbonising housing association homes.

Hard to decarbonise social homes

NHF members have told us they are concerned about homes that may be especially hard or even impossible to decarbonise. This might be because the measures required are uneconomic, logistically or technically troublesome, or the impact of those measures on residents or others is unacceptable.

Find out more about why some social homes are harder to decarbonise.

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 Sixth Carbon Budget - briefing

The most comprehensive advice the Climate Change Committee has produced yet. The UK’s Sixth 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, including this one for buildings. There work on buildings was supported by this accompanying report outlining housing’s likely and most efficient trajectory to zero emissions.

Funding opportunities

Social Housing Decarbonisation Fund - Wave 3

There will be two new routes to access funding under SHDF Wave 3. The Challenge Fund is expected to suit the vast majority of grant recipients. A small number with a proven track record of successful delivery at scale can access funding through a Strategic Partnership. 

Funding from Energy Company Obligation - phase 4 (ECO4) 

ECO4 is running from 2022-2026 and social homes will be eligible for funding if they are EPC Bands E-G (some Band D will be eligible for 'innovation measures') and the residents qualify under the scheme.


In Autumn 2022, in response to the unprecedented increase in energy prices, the government announced proposals for an additional ECO+ scheme to run alongside and compliment ECO4 delivery. ECO+ will run from Spring 2023 until March 2026 at a value of £1bn over the three years. Under the proposals, ECO+ will support the installation of additional energy efficiency measures in around 410,000 homes.

Heat network funding

Find out more about funding for public, private and third sector applicants in England and Wales to improve district heating or communal heating systems.

VAT reliefs for decarbonisation works

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

Who to speak to

Rory Hughes, Policy Officer