Social Housing Decarbonisation Fund (SHDF)

What Is The Social Housing Decarbonisation Fund?

The Social Housing Decarbonisation Fund was established to tackle one of the pressing issues of our time: climate change. The UK government recognises that social housing plays a significant role in achieving national targets for carbon reduction. The SHDF aims to support the retrofitting of social housing with measures that improve energy efficiency. This includes upgrading insulation, installing energy-efficient heating systems, and integrating renewable energy sources like solar panels.

The scheme is part of the government’s broader commitment to reaching net-zero carbon emissions by 2050. By focusing on social housing, the fund addresses a critical segment of the housing market that often includes some of the least energy-efficient homes. Through this fund, social housing providers can access grants to implement these necessary improvements, ensuring that their properties are brought up to modern energy efficiency standards.

Who Is Eligible for the Scheme

Eligibility for the Social Housing Decarbonisation Fund is primarily focused on registered providers of social housing, including:

• Local Authorities: Local government entities that manage social housing stock.
• Housing Associations: Non-profit organisations that provide affordable housing.
  These organisations must own and manage social housing properties that are currently below an Energy Performance Certificate (EPC) rating of C. The aim is to elevate these

properties to a minimum EPC rating of C, significantly improving their energy efficiency.

To qualify for funding, social housing providers need to:

• Submit a Detailed Project Proposal: Outline the expected improvements, cost of the measures, and anticipated benefits in terms of energy savings and carbon reduction.
• Demonstrate a Clear Plan: Show how the energy efficiency measures will be implemented.

Additionally, tenants of social housing also stand to benefit indirectly from the scheme. While they are not the direct recipients of the funding, the improvements made to their homes will result in lower energy bills and a more comfortable living environment. Therefore, the SHDF ultimately aims to support both the social housing providers and their tenants, ensuring that the benefits of energy efficiency are widely distributed.

Potential Benefits of the Scheme

The Social Housing Decarbonisation Fund offers numerous benefits, not only to the environment but also to social housing providers and tenants. Some of the key benefits include:

• Reduced Energy Bills: By improving the energy efficiency of social housing, tenants can enjoy lower heating costs, which is particularly beneficial for low-income households. This reduction in energy expenditure can help alleviate fuel poverty and improve the overall financial wellbeing of tenants.
• Environmental Impact: The SHDF is instrumental in reducing carbon emissions. Social housing currently contributes a significant portion of the UK’s carbon footprint due to outdated and inefficient heating systems. By upgrading these homes, the scheme helps to cut down on carbon emissions, contributing to the national targets for carbon reduction and environmental sustainability.
• Improved Housing Quality: The scheme enhances the quality of housing stock within the social housing sector. Improved insulation, modern heating systems, and renewable energy installations not only make homes more energy-efficient but also increase their overall quality and durability. This, in turn, can lead to longer-lasting properties that require less maintenance and provide better living conditions for tenants.
• Economic Benefits: The demand for energy efficiency improvements stimulates the green economy, creating jobs and opportunities in the renewable energy and construction sectors. This economic boost can help drive innovation and investment in sustainable technologies, further supporting the UK’s transition to a low-carbon economy.