More funding to schools, hospitals and public buildings to lower energy use and save on bills, and cut carbon emissions
Public sector organisations can now bid for a share of 拢230 million to help make low-carbon energy upgrades to their buildings.

- 拢230 million made available to schools, hospitals, leisure centres and other public buildings in latest round of funding聽聽聽
- Grants will allow schools, hospitals and other public buildings to install low-carbon heating and energy efficiency measures聽聽聽
- More than 1,000 buildings have already received upgrades helping them save thousands of pounds on energy bills
More schools, hospitals and other public buildings聽will be able to reduce energy use, save on bills and cut carbon emissions for the long-term through the latest round of funding from the Public Sector Decarbonisation Scheme.聽聽聽
From today (Tuesday 10 October), public sector organisations can bid for a cut of 拢230 million of government funding to support significant low-carbon energy upgrades to their buildings, ranging from heat pumps and solar panels, to new energy efficiency measures such as insulation and low-energy lighting.
The opening of the latest bidding process coincides with the 3-year anniversary of the scheme, which has so far allocated more than 拢2 billion to almost 1,000 public sector organisations across England, helping them reduce energy bills and carbon emissions in the long term.聽
Today鈥檚 funding marks another step in the government鈥檚 pragmatic and proportionate approach to reaching net zero, by scaling-up energy efficiency of buildings across the country and supporting the switch to more low-carbon heating.聽聽聽聽
The commitment follows significant progress the UK has already made towards reaching net zero - cutting all emissions by 48% between 1990 and 2021, which is faster than any other G7 country. Decarbonising the public sector with low carbon heating and energy efficiency measures is also expected to save the public sector an estimated 拢650 million per year on average to 2037.聽聽聽聽聽聽
Lord Callanan, Minister for Energy Efficiency and Green Finance, said:
We are a world-leader when it comes to reducing carbon emissions - and for us to reach our goal of net zero by 2050, we want to help public bodies like schools and hospitals to do their bit.聽聽聽
We鈥檝e made fantastic progress so far, helping more than 1,000 schools, hospitals and leisure centres. Today鈥檚 funding will now help even more organisations across England bring their bills down, while also cutting their emissions.
The funding, announced today, has been made available through Phase 3c of the scheme, with organisations able to spend the money allocated in the 2024 to 2025 financial year 鈥� on top of further funding for 2025 to 2026.聽聽聽
Organisations that have benefited from a share of more than 拢2 billion under the scheme over the past 3 years include:聽聽聽
- 聽University Hospitals Coventry and Warwickshire NHS Trust have saved 拢54,500 on their annual energy bill thanks to a new air source heat pump at the Hospital of St Cross in Rugby and聽new solar panels and pipework insulation
- Staffordshire County Council have installed air source heat pumps and solar panels at the new Kingston Centre in Stafford. The school will also receive new energy efficiency measures, including a聽building energy management system,聽LED聽lighting, double glazing, roof insulation, cavity wall insulation, and pipework insulation. This is due to save them 拢79,700 on their annual energy bill聽聽聽
- Upper Norwood Library and the Waterloo Action community centre in the London Borough of Lambeth will see their energy efficiency improved 鈥� saving the council 拢5,200 on their annual energy bill. Air source heat pumps were installed at both sites, alongside聽LED聽lighting, double glazing, insulation and building energy management systems. Solar panels have also been installed at the Waterloo Action community centre聽聽
The Public Sector Decarbonisation Scheme aims to support the government鈥檚 commitment to reduce emissions from public sector buildings by 75% by 2037, compared to 2017 levels, as first set out in the 2021 Heat and Buildings Strategy.聽聽
Ian Rodger, Director of Programmes at Salix, said:
Salix is delighted to be delivering the next phase of the Public Sector Decarbonisation Scheme to support public sector bodies in their net zero transformation journey. The scheme is empowering organisations across England to make significant reductions in their carbon footprint from heating public buildings.鈥� 鈥犅犅�
The huge enthusiasm for the scheme shows how much public sector bodies care about their carbon emissions and Salix is proud to be able to support them with finance and technical support to achieve their ambitions.
To apply for funding public sector bodies should visit: Public Sector Decarbonisation Scheme: Phase 3.
Notes to editors
As the application window of each Public Sector Decarbonisation Scheme phase closes, a summary report is published which details application data, including value of applications, sectoral breakdowns and case studies. They are available to read on the Public Sector Decarbonisation Scheme page.
Phase 3 of the Public Sector Decarbonisation Scheme is investing 拢1.425 billion over the financial years 2022 to 23 and 2024 to 2025.