Government cuts public sector decarb funding

The government has announced that it has decision to commit no further investment for the Public Sector Decarbonisation Scheme beyond currently awarded projects.

Following this week’s government Spending Review, which outlined capital and day-to-day funding for government departments over the next three years, the scheme’s operator Salix confirmed there will be no additional funding for the Public Sector Decarbonisation Scheme.

All currently awarded projects in the scheme remain fully funded.

Salix is currently delivering Phase 3c and Phase 4 of the Public Sector Decarbonisation Scheme and our work supporting these projects will continue until these projects are complete and operational.  For Phase 3c, projects, grant funding will continue until 31 March 2026 and for Phase 4 up until 31 March 2028.

The PSDS was launched in 2020 to support public sector organisations in England to install low carbon heating and energy efficiency measures in their estates. These measures support public sector organisations to reduce their carbon emissions and their energy bills

In total, more than £3.5 billion has been issued through nearly 1,400 Public Sector Decarbonisation Scheme grants up to the end of 2027/28. More than £1 billion of PSDS budget will still be invested between now and 2028.