The government has made an additional £635m in funding available for public sector organisations in England to install low-carbon heating and other energy efficiency measures.
Schools, hospitals, leisure centres and historic town halls could be among hundreds of public buildings across England to receive the upgrades.
The funding is available through the Public Sector Decarbonisation Scheme with organisations such as NHS Trusts, schools and local authorities able to apply for grants from September. Public sector bodies and taxpayers are expected to save an average of £650 million per year on energy bills over the next 15 years.
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Upgrades are already under way through earlier rounds of the scheme, with 734 grants awarded to public sector organisations across England.
The Public Sector Decarbonisation Scheme supports the aim of reducing emissions by 75% from public sector buildings by 2037, when compared to 2017 levels, with guidance on how to apply for funding published today.
This funding round of up to £635 million is the second part of an overall £1.425 billion due to be allocated through the Public Sector Decarbonisation Scheme between 2022 and 2025.
The Public Sector Decarbonisation Scheme is delivered on behalf of the government by Salix Finance.
Business and energy minister Lord Callanan said: “By helping even more public sector bodies ditch costly fossil fuels, we are taking an important step towards a more sustainable future while driving economic growth across the country and continuing to support tens of thousands of jobs.”
The January/February 2026 issue of Construction Management magazine is now available to read in digital format.
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