Additional funding of £80 million, from the Social Housing Decarbonisation Fund (SHDF) Phase 2.2, will enable more tenants in social housing to benefit from energy efficiency improvements in their homes.

What Is The SHDF?

The Social Housing Decarbonisation Fund is public funding that’s made available to both reduce the carbon emissions and increase the energy efficiency of social housing buildings. The funding specifically provides tenants with improved measures such as wall & loft insulation, solar panelslow carbon heating alternatives and more.

The grants are available through a procurement process where local & combined authorities, registered providers of social housing, and registered charities that also own social housing are able to bid as either a single bidder or as part of a consortium.

Phase 2.1 closed applications on 18 November 2022 and allocated up to £800 million in funding for projects running until 2025. 

Phase 2.2

The upcoming Phase 2.2 is set to allocate up to an additional £80 million of grant funding for projects starting on or after April 2024. The fund will directly benefit 9,500 social housing tenants in making their homes warmer and more energy efficient. It’s expected that the fund will result in annual energy cost reductions of approximately £240 for some of the most financially vulnerable households.

Applications are due to open mid-November, with specific guidance being released in the next couple of weeks.


Authorities wishing to apply for the funding have been given a minimum threshold that they must meet in on order to bid as a single bidder. These include that:

  • All existing social housing stock must have an Energy Performance Certificate (EPC) band C or below
  • All submissions should at a minimum include 100 eligible social housing properties at EPC band D-G

Applicants that don’t meet the threshold should look to apply as part of a consortium first, but if not possible, submit a strong justification explaining why they can’t meet the requirement.

How We Can Help

Leverage our expertise to enable you to make cost-effective, sustainable, and environmentally friendly decisions when it comes to upgrading your social housing stock.

With a specific focus on decarbonisation and energy efficiency, we’re able to project management and handle every aspect of the works, from assessment right through to after-sales support.

Connect with us today!

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Sellwood court, Sleaford, Lincs, NG34 8YX

Martin Badley Mechanical Services Ltd T/A MBMS, Company registered in England and Wales. Company number 08926273, registered office Unit 5, Baker Business Park, Sleaford, Lincs, NG34 8YX

Martin Badley Mechanical Services Ltd, is an Introducer Appointed Representative of Shermin Finance Limited. Company Registration 01276121, Registered office Devon House, 1 Chorley New Road, Bolton, BL1 4QR. Shermin Finance Limited act as a credit broker and is not a lender.