What is the Social Housing Decarbonisation Fund and how does it work?

How will the Social Housing Decarbonisation Fund impact social housing and the UK’s economy?

By Sophie Wyatt

13 September 2021

UK homes account for almost 40% of the country’s carbon emissions. A country-wide retrofit will be vital to combat this. And it is even more crucial as we strive towards our net zero targets. With this in mind, the government has introduced the Social Housing Decarbonisation Fund.

The £3.8 billion fund is set to be released in four waves, one of which was launched earlier this year. The first wave is predicted to improve the efficiency of up to 38,000 of the UK’s worst energy performing social houses.

So, let’s take a look at the Social Housing Decarbonisation Fund and how it works.

How does it work?

Announced in 2019, the UK government has just opened up the first stage of the scheme with a substantial investment. Social landlords and housing managers will be able to bid for a share of the £160 million fund. This investment will be used to retrofit social housing properties across the UK. The scheme will cover several energy efficient upgrades, including:

  • New heating systems
  • Energy efficient doors and windows
  • Upgraded insulation

Earlier this year, The Department of Business, Energy and Industrial Strategy (BEIS) invested £62 million into the Social Housing Decarbonisation Fund. This investment was used to test innovative approaches to retrofitting some 2,300 homes across the country.

The scheme will provide grants to social landlords and social housing managers whose properties have Energy Performance Certificate (EPC) ratings of ‘D’ or below. There are close to 1.6 million houses that fall into this category. This means that the scheme could significantly decrease the UK’s emissions.

Social housing managers and councils must file bid applications by 15th October 2021. Applicants will hear back in early 2022.

What is the impact of the fund?

The Climate Change Committee (CCC) has repeatedly warned the government that it must take control of the spiralling housing and climate crises. Social housing accounts for around 20% of the UK’s emissions, and the sector must be addressed.

BEIS has described the fund as a ‘triple win’: resulting in warmer houses, reduced emissions, and lower energy bills. Households that are set to benefit from the new funding could see annual savings of £170 on their energy bills.

The reduction of emissions will help to fast-track the UK towards its net zero targets. But it will also save many low-income households from fuel poverty. As fossil fuel prices continue to rise, the scheme has come at the best possible time. Sustainable installations will also generate work for plumbers, builders, and electricians, giving a much-needed boost to the UK’s economy.

The fund aims to upgrade a remarkable amount of social housing stock currently below Energy Performance Certificate (EPC) C up to a high standard. It will deliver energy efficient homes and reduce emissions, while also tackling fuel poverty and generating green jobs.

How can Welcome help?

At Welcome, we aim to deliver a simple and stress-free tenant billing service to our clients. We understand energy efficiency, offering monthly system performance reporting and fuel procurement at a competitive rate.

With our expert team and years of experience, we can provide you with the most effective and beneficial service.

Get in touch today to find out more about how we can help you become more sustainable.



Our offices will be closed for the Bank Holiday (Monday 29 August 2022).
If you have a query, please contact us from Tuesday 30 August onwards, and we
will be happy to deal with your query then.
energy efficiency