Public Sector Decarbonisation Scheme: Current Phase 2024–2025
The Public Sector Decarbonisation Scheme (PSDS) remains a key pillar of the UK’s strategy to achieve net zero emissions by 2050. Since its launch in 2020, the scheme has allocated billions of funding to public sector organisations, helping them reduce carbon emissions through energy efficiency upgrades and low carbon heating solutions. This can be seen through various projects procured through LHC.
Where does the scheme stand now?
As of 2024–2025, the PSDS is in Phase 3b, with ongoing funding rounds and evolving priorities. Here’s what you need to know about its current status:
Latest Funding
The government has committed an additional £1.425 billion for Phase 3.
Focus areas include:
- Heat decarbonisation: replacing gas boilers with heat pumps.
- Building energy efficiency: Insulation, smart energy systems, LED lighting
- Strategic decarbonisation plans: long term projects
Who can apply?
- Schools, colleges, and universities
- Hospitals and NHS trusts
- Local authorities and government buildings
- Emergency services, police, and fire stations
What happens next?
More than £300 million has already been committed to Phase 3c projects for financial year 2025/26.
Planning ahead will be beneficial, as future funding may require more detailed decarbonisation strategies.
How can LHC help?
The LHC Retrofit and Decarbonisation framework is well-suited for addressing these projects. It has been designed to be flexible and is future-proofed against changes within the sector, ensuring it remains relevant during its four year duration.
For any questions or more information, please get in touch with Boby Singh at Boby.singh@lhcprocure.org.uk for our London and South East region or Adam Durrance at Adam.durrance@lhcprocure.org.uk for the Midlands region.
