The government “has taken the difficult decision to commit no further investment for the Public Sector Decarbonisation Scheme [PSDS] beyond currently awarded projects.”
The following text is taken from the Local Government Chronicle press release.
The government will stop funding a multi-billion pound scheme to help decarbonise public sector buildings following the Spending Review.
Salix, a non-departmental public body wholly owned by the UK government, said the government “has taken the difficult decision to commit no further investment for the public sector decarbonisation scheme [PSDS] beyond currently awarded projects”.
Salix, which administers funds on behalf of the Department for Energy Security & Net Zero, said there will be no additional funding for the scheme, although all currently awarded projects in the scheme remain fully funded.
Salix is currently delivering phase 3c and phase 4 of the PSDS and said its work supporting these projects “will continue until these projects are complete and operational”. It said that for phase 3c projects grant funding will continue until 31 March 2026 and for phase four up until 31 March 2028.
The scheme was launched in 2020 to support public sector organisations in England to install low carbon heating and energy efficiency measures in their estates.
Salix said more than £3.5bn has been issued through nearly 1,400 PSDS grants up to the end of 2027-28, with more than £1bn of its budget still to be invested between now and 2028.
