Munday and Cramer

Public Sector Decarbonisation Fund: Phase 3B 

Thinking about applying for the Public Sector Decarbonisation Fund? Now more than ever, it’s vitally important that everyone is doing their bit to lower their use of fossil fuels. To help promote this, the government is offering funding to help the public sector decarbonise their infrastructure. This being said, applying for funding is easier said than done, with lots of hoops to jump through. 

For more information on the scheme and how Munday + Cramer can help, keep reading. 

What is the Public Sector Decarbonisation Fund?

For those of you who missed our previous blogs on PSDS, let us start with a simple explanation.  

The Public Sector Decarbonisation Scheme (PSDS) is a type of funding that can be awarded to those businesses that fall within the public sector. Included within the public sector are councils, NHS facilities, some schools and much more. The programme was designed to help these businesses become more eco-friendly. The main aim is to reduce total emissions by 75% before 2037. This kind of financial backing will allow organisations to replace certain equipment with more energy-efficient options, along with building works that will bring down energy usage. 

Who can apply?

 The Public Sector Decarbonisation Fund is available to the following institutions, amongst others:  

  • Central government departments 
  • The emergency services 
  • Institutions of further and higher education (colleges and universities)  
  • Local authorities 
  • State schools 
  • Nurseries under a local authority 
  • NHS and Foundation Trusts 

A quick overview of the phases so far:

PSDS Phase 1

Phase 1 of the Public Sector Decarbonisation Fund saw grants totalling around £1 billion from April 2020 to March 2022. The scheme also helped the country recover economically after COVID-19 and the many lockdowns. Job creation was a huge motivator behind this stage of the programme, along with the obvious main aim of decarbonisation. 

PSDS Phase 2

Phase 2 focussed on heat decarbonisation more so than the first round – one of the major contributors to energy usage within these institutions. During the 2021/2022 financial year, a further £75 million was granted to those within the public sector. During this phase, those receiving funding were encouraged to take a ‘whole building’, holistic approach, rather than focussing on making individual changes.  

PSDS Phase 3

Phase 3 has been split in two rounds of funding – Phase 3a and 3b. 

Similar to the Phase 2, 3a was also focussed on heat decarbonisation in order to help the UK reach its net zero commitments. A further £1.425 billion in grants are expected to be issued between April 2022 and March 2025 as part of the third stage in its entirety. 

What’s different about Phase 3B of PSDS?

Similar to the other phases, 3b still strives to achieve the same end goal of reduced fossil fuels. This time, however, a soft cap has been introduced to ensure that funding is allocated fairly across all sectors. This is on a first-come-first-served basis still, so if your sector is set to receive a lower funding cap (TBA) then you will have to get in quick for a chance to secure funding. 

Another change is that the carbon reduction measures can be carried out over two financial years, rather than just one, which will add a lot more flexibility to applicants.  

There are lots of different criteria that you will need to meet in order to apply. Examples include the agreement to contribute to decarbonisation by fitting a low carbon heating system in each of your buildings, as well as proof that you have tried to lower flow temperatures for heat pump systems. There are lots of rules that need to be followed to ensure that you can secure funding. For the best chance at success, you should work with a company with experience in securing government funding for your sector. 

Contact Us Today

Have additional questions about the Public Sector Decarbonisation Fund? Need help applying for Phase 3b of the scheme? Here at Munday + Cramer, we specialise in bid writing, architecture, surveying, and project and facilities management. What’s more, we also have over 40 years of experience! 

To reach a member of our specialist team, get in touch today. You can reach us on or by calling 01245 326 200.