Wave 2 of Social Housing Decarbonisation Fund opened

On 29th September, Wave 2.1 of the Social Housing Decarbonisation Fund (£800m) was launched by BEIS to support energy efficiency improvements in the social rented sector. Phase 2 of Home Upgrade Grants (£700m) was also launched, aiming to support low-income households off the gas grid. 

This funding comes at a critical time as we face a cost-of-living, energy, and climate crisis. We know that upgrading our homes by reducing the amount of energy they use and how they are heated is central to addressing these crises in the long-term. Warm, insulated homes heated with low carbon technologies have significantly fewer emissions, reduced energy bills, and lead to better health and wellbeing outcomes.  

On the launch of the funding, the NHC’s Tracy Harrison said:  

“We welcome the opening of this important funding, which gives the North the opportunity to scale-up social housing retrofit programmes, creating good, skilled, green jobs and helping to tackle fuel poverty in our communities. 

The North is ambitious for this Wave – some significant collaborations are under way and councils and housing associations are looking forward to working with BEIS to build on the momentum we’ve already established together.” 

The Conservative Party manifesto committed to delivering a £3.8bn Social Housing Decarbonisation Fund (SHDF) over a ten-year period to upgrade the energy performance of social rented homes below EPC C. The aims of the Fund are to “deliver warm, energy-efficient homes, reduce carbon emissions and fuel bills, tackle fuel poverty, and support green jobs”. 

 An SHDF Demonstrator was launched in August 2021 with an initial investment of £62m from the overall fund. The NHC’s analysis showed that successful bids in the North represented only 14% of the funding allocated in England through the Demonstrator round: Sunderland City Council, Manchester City Council, and Leeds City Council were the successful Northern local authorities. 

Wave 1 of SHDF funding totalled nearly £179m granted to 69 lead local authorities across England. Our analysis of the allocation shows that 19 of these 69 local authorities are in the North with funding totalling around £63m coming to the region. This represents 35% of total funding allocated through Wave 1 which is a significant improvement on the 14% the North received through the Demonstrator round. 

Wave 2.1 will see up to £800m of grant funding allocated. We hope our ambitious members in the North will engage fully with the Fund to continue to create and regenerate sustainable homes, and build resilient, thriving communities in the region. 

NHC members discussed this new round of funding at a roundtable with Selvin Brown, Director of Net Zero Buildings at BEIS, this month. Selvin will be addressing the NHC’s flagship event, the Northern Housing Summit, in Manchester on 9th November – make sure your place is secured here. 

See SHDF Wave 2.1 guidance here and HUG Phase 2 guidance here.