Financial information

Additional savings for ratepayers through green upgrades to public buildings

  • More funds made available to retrofit public buildings in England with affordable, low-carbon heating and energy efficiency measures
  • the upgrades will help ratepayers and public bodies save an average of £650m a year on energy bills over the next 15 years
  • the investment is part of a total public funding of £2.5billion for the modernization of public buildings such as schools and hospitals

Schools, hospitals, leisure centers and historic town halls could be among hundreds of public buildings across England to receive energy efficiency upgrades, helping to lower energy bills and save money. million pounds to taxpayers every year.

Up to £635m of government funding will be made available to public sector organizations so they can install low-carbon heating, such as heat pumps, and energy efficiency measures, including double glazing and attic insulation.

Funding is available through the Public Sector Decarbonisation Scheme with organizations such as NHS Trusts, schools and local authorities able to apply for grants from September. Public sector bodies and taxpayers are expected to save an average of £650m a year on their energy bills over the next 15 years.

Upgrades are already underway in previous phases of the scheme, with 734 grants awarded to public sector organizations across England so far and Phase 1 alone supporting up to 30,000 jobs in the clean heating and energy efficiency sectors.

Business and Energy Minister Lord Callanan said:

We already provide improvements to hundreds of public buildings across England, making them cheaper to operate and saving taxpayers millions of pounds every year.

By helping even more public sector organizations transition from expensive fossil fuels, we’re taking an important step toward a more sustainable future while driving economic growth across the country and continuing to support tens of thousands of jobs.

Installing low-carbon heating systems, powered by cleaner and cheaper renewable energy, will enable organizations to reduce their use of expensive fossil fuels where prices are being pushed up by market pressures energy worlds. It will support thousands of jobs and also save taxpayers money, as measures will ensure that public buildings will be cheaper to heat.

The Public Sector Decarbonisation Program supports the goal of reducing emissions from public sector buildings by 75%, below 2017 levels, by 2037 – with guidance on how to apply for funding released today .

This funding round of up to £635m is the second part of a total of £1.425bn to be allocated through the public sector decarbonisation program between 2022 and 2025.

Projects that have already received funding include Nottingham University Hospitals NHS Trust, which has received over £70million to install water source heat pumps at Queens Medical Center. At Nottingham City Hospital, they installed air-source heat pumps and introduced energy efficiency measures such as draft protection and double glazing, while Nottingham City Council Leeds have been given £4.3m to decarbonise primary schools and daycares.

The Birmingham Women’s and Children’s NHS Foundation Trust has received over £50m to install clean heating and energy efficiency measures in their hospitals and the Royal Botanic Gardens, Kew has received over £4.4m to decarbonize the Grade II listed Nash Conservatory and Jodrell Laboratory.

The funding is part of the £6.6 billion the government is investing in this Parliament to reduce fossil fuel use and emissions from buildings, including households, while creating highly paid and highly skilled jobs. This includes over £2billion aimed specifically at decarbonising low-income households and saving people money on their energy bills.

The Public Sector Decarbonization Program is delivered on behalf of the government by Salix Finance.

Salix Finance Managing Director Annie Shepperd said:

There is no better time than the present to push the decarbonization agenda forward as our country must meet its ambitious goals of reducing our carbon footprint and reducing our consumption of very expensive energy.

Salix is ​​proud to work on projects that transform public sector buildings. This vital work reduces our carbon footprint and makes these buildings better places for the public to work and use, while saving money for the taxpayer.

Notes to Editors

  • Projects supported so far by the public sector decarbonization program
  • see more information on the application process for the next round of program applications, phase 3b
  • BEIS delivery organization Salix Finance manages the public sector decarbonization program
  • Phase 1 of the Public Sector Decarbonisation Program has provided £1bn in grants as part of the Chancellor’s Plan for Jobs 2020 commitment to support the UK’s economic recovery from COVID-19. It aimed to support up to 30,000 jobs in low-carbon and energy-efficient sectors and reduce public sector carbon emissions
  • Phase 2 of the public sector decarbonisation program provided £75m in grants for the financial year 2021/2022. It has helped the public sector take a “whole building” approach when decarbonizing their assets
  • Phase 3 of the public sector decarbonisation program will see a total of £1.425 billion allocated between 2022 and 2025
  • this funding is part of the £6.6billion the government is investing in this parliament to decarbonise buildings, of which more than £2billion is specifically targeted at low-income households and helping people save energy money on their energy bills
  • the government is also providing £14m in grants in the current financial year under Phase 3 of the Public Sector Low Carbon Skills Fund. This will provide funding for public sector organizations to access the skills and expertise needed to plan the decarbonisation of heating in their buildings, including enabling organizations to develop apps for the public sector decarbonisation programme.