Government Splashing £1.8bn on Social Housing and Public Buildings Energy Upgrades
The government has announced a massive £1.8 billion cash injection aimed at slashing energy bills and boosting green jobs by upgrading social homes and public buildings across England.
£1.4bn Boost for Social Housing and Off-Grid Homes
- £1.4 billion set aside for local councils, social housing providers, and charities to install energy-saving measures such as loft insulation, new windows, and exterior wall insulation.
- These upgrades could save families £220 to £400 a year on energy bills, helping more than 115,000 homes.
- The investment is forecasted to support around 20,000 green jobs in construction and home retrofitting.
The government’s Social Housing Decarbonisation Fund and Home Upgrade Grant together total £1.4 billion, with an added £1.1 billion matched funding from local authorities and housing providers, bringing total investment to a whopping £2.5 billion.
These upgrades target vulnerable households and off-gas grid homes rated EPC D or below, dramatically cutting their energy costs and carbon footprint.
£409 Million to Slash Carbon in Public Sector Buildings
On top of social housing, £409 million will go towards the Public Sector Decarbonisation Scheme. This targets public buildings — schools, hospitals, leisure centres — installing greener heating systems like heat pumps and solar panels.
This upgrade not only cuts carbon emissions but also shields taxpayers from volatile fossil fuel prices, potentially saving hundreds of millions of pounds.
Grant Shapps, Secretary of State: “We know this is a difficult time for families, which is why the government is covering around half a typical household’s energy bill this winter. This huge investment will help households save hundreds on energy bills, heat homes for less and stay warm longer. Plus, it’ll boost economic growth and create exciting jobs in the UK’s green sector.”
Real Families Reap the Benefits
Aliye Galloway, a Northamptonshire resident living in social housing with five children, saw her home fitted with solar panels and an air source heat pump thanks to the Social Housing Decarbonisation Fund.
“We’re already seeing massive savings on our energy bills, even with prices going up. It’s been a game changer — our home is more eco-friendly, and we’ve ditched gas completely. We’re now just electric, and that means big savings for us.”
Industry and Local Leaders Welcome the Funding
Adam Scorer, CEO of National Energy Action: “This vital investment targets low-income homes hit hardest by rising bills. It not only eases financial pressure but helps reduce the health impacts of living in cold homes.”
Tracy Harrison, Northern Housing Consortium: “Retrofitting homes towards net zero is top priority. This funding will create green jobs and deliver warmer homes with better health outcomes.”
Carol Matthews CBE, Riverside Group CEO: “We secured nearly £12.7 million to upgrade 1,100 homes, protecting residents from soaring fuel bills during the cost of living crisis.”
Public sector bodies are also thrilled, with councils and trusts set to receive millions to invest in sustainable infrastructure:
Cllr Helen Silman, Worthing Council: “This funding helps secure Worthing’s sustainable future and supports our target of carbon neutrality by 2030.”
Cristina Calleja, South Warwickshire University Foundation Trust: “This grant highlights our commitment to tackling climate change every step of the way.”
Peter Davies, canterbury/" title="Canterbury" data-wpil-keyword-link="linked">Canterbury City Council: “This will massively cut emissions at Kingsmead Leisure Centre using cutting-edge tech to protect the environment.”
Government’s Green Push Continues
The government is also rolling out new tools and guidance for the public sector through the Energy Systems Catapult, simplifying the path to net zero. This builds on the successful Modern Energy Partners programme that’s already upgraded 42 sites.
With the UK cutting emissions faster than any G7 peer and aiming for a 15% reduction in overall energy demand by 2030, these investments mark a crucial step forward in securing a greener, cheaper energy future for all.
