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The government has announced that a further 拢1.25bn will be allocated to the Social Housing Decarbonisation Fund (SHDF), which will be used to insulate or retrofit 140,000 homes between 2025 and 2028.

In the 2022 autumn statement, chancellor Jeremy Hunt said that a further 拢6bn would be allocated to driving energy efficiency measures in buildings and industry.

Now the Department for Energy Security and Net Zero (DESNZ) has outlined how the 拢6bn in funding for 2025-2028 will be allocated.

The government鈥檚 announcement on the release of further funding for the SHDF  to release all the funding for the SHDF in one go, rather than allocating it gradually through waves.

Under wave 1 of the SHDF, the government offered 拢179m to 29 projects, while in wave 2.1 拢778m was granted, and wave 2.2鈥檚 top-up competition will distribute 拢80m of grant funding by April 2024.

On the funding announcement, CIH鈥檚 chief executive Gavin Smart, said: 鈥淲ith high energy prices here to stay, improving the energy efficiency of our homes is one of the surest ways of cutting carbon, reducing fuel poverty, and improving housing quality.

鈥淭hat鈥檚 why CIH has continually called for additional government investment in energy efficiency schemes, and we are delighted to see these announcements, especially the largest wave of the Social Housing Decarbonisation Fund to date.

鈥漈he announcements recognise the leading role that local authorities and housing associations have played in pioneering the retrofit of existing homes, enabling beneficiaries to live warmer, healthier, and happier lives.鈥�

Kate Henderson, chief executive of the National Housing Federation, said: 鈥淚n September we wrote to secretary of state Claire Coutinho, urging the government to release this funding and recommit to its manifesto pledge on net zero. It鈥檚 great to see that the government has listened, and by providing this additional funding, social landlords will be able to plan and invest in further retrofit works that will help lift residents out of fuel poverty, ensuring they live in warm homes that are affordable to heat.鈥�

Richard McWilliams, director of sustainability at consultant Turner & Townsend, said the new announcements were a 鈥渧ery positive step forward鈥� that would give the sector confidence to invest. 

鈥淭he breadth of the package is particularly important,鈥� he said. 鈥漈hese measures address homes, public sector buildings, heat networks and more. This shows the Government is aware of how holistic our solutions to the retrofit challenge need to be.

鈥滻t鈥檚 not only about an individual building 鈥� it鈥檚 about whole areas being upgraded and networked together. The industry needs to step up and respond in kind.

鈥漌e should work together across the sector to develop coordinated area-based strategies, scope out our skills and capacities, and present these to Government. Through this we can maximise the impact of this funding and deliver the retrofit revolution we need.鈥�

Wates Property Services鈥� executive managing director, David Morgan, added that the latest wave of funding was a 鈥漟antastic endorsement by Government of the work already carried out across the sector to improve and futureproof more and more social housing properties鈥�. 

鈥淭his is an important development that demonstrates the commitment Government has to improving the energy efficiency of social housing properties. Support like this is vital to our continued investment in innovation, skills, training and technology on the journey to net zero carbon,鈥� he said.

The government also announced a further 拢1.5bn will be allocated to the boiler upgrade scheme, to help households in England and Wales replace gas boilers with heat pumps.

A 拢400m grant for household energy efficiency, launching in 2025, will fund improved insulation and larger radiators.

The government has also committed 拢500m to a new local authority retrofit scheme, which it said will support up to 60,000 low-income and cold homes, with measures such as insulation. 

Claire Coutinho, energy secretary. said that the funding for the SHDF and local authority retrofit scheme 鈥渨ill help us go even further and improve 200,000 cold, low income and social homes鈥�.

Other funding announced included 拢485m for the Green Heat Network Fund, to help up to 60,000 homes and buildings access affordable, low carbon heating through new heat networks.

The Heat Network Efficiency Scheme has been allocated 拢45m to improve around 100 existing heat networks.

The Industrial Energy Transformation Fund, which will receive 拢225 million, will continue to help businesses transition to a low-carbon future.