Skip to main content

Government Ends Future Funding for Public Sector Decarbonisation Scheme

Written by Abdullah on . Posted in News.

The government has announced that it will commit no further investment to the Public Sector Decarbonisation Scheme beyond currently awarded projects. This significant decision follows this week’s Spending Review and marks the end of new funding opportunities for one of the UK’s most substantial green building programmes.

What’s Happening with Current Projects?

All currently awarded projects remain fully funded. If your organisation has been successful in securing Phase 3c or Phase 4 funding, your project will continue as planned:

  • Phase 3c projects: Grant funding continues until 31 March 2026
  • Phase 4 projects: Grant funding continues until 31 March 2028

The Public Sector Decarbonisation Scheme has seen more than £3.5 billion allocated through nearly 1,400 grants, with over £1 billion still to be invested between now and 2028. The scheme was designed to help public sector organisations across England install low carbon heating systems and energy efficiency measures, supporting both carbon reduction targets and energy bill savings.

What This Means for Your Organisation

For many public sector organisations, particularly schools, colleges, and healthcare facilities, this announcement represents a significant shift in funding strategy. The scheme has been a vital resource for organisations looking to modernise their heating systems, improve insulation, and reduce their environmental impact whilst cutting operational costs.

Looking Beyond the Scheme

Whilst the government has stated it remains committed to supporting public sector decarbonisation and is exploring alternative incentive methods, organisations will need to consider other funding routes and approaches.

At Munday & Cramer, we understand that achieving net zero targets requires strategic planning, whether through government funding schemes or alternative approaches. Our team has extensive experience in:

  • Energy audits and efficiency assessments
  • Low carbon heating system design and specification
  • Building fabric improvements for enhanced thermal performance
  • Project management for complex retrofit programmes
  • Facilities management to optimise ongoing performance

At Munday & Cramer, we work with organisations across Essex, London, and the South-East to navigate these challenges. With over 40 years of experience in the built environment and a deep understanding of both educational and healthcare sectors, we can help you explore the most effective pathways forward.

Whether you’re managing a current PSDS project or exploring alternative routes to decarbonisation, our team is here to help. We provide comprehensive support tailored to your organisation’s needs.

To discuss how we can support your sustainability objectives, contact our team today. You can reach us by email at info@mcessex.co.uk, call us on 01245 326 200, or get in touch through our contact page.