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Social Housing Decarbonisation Fund – Wave 1 competition 16/09/2021 Labelled as Finance

Applications for funding under the Government's Social Housing Decarbonisation Fund (Wave 1 Competition) close on 15 October.


The Chancellor made an announcement in the 2020 Summer Economic Update of a new £3.8 billion Social Housing Decarbonisation Fund (SHDF) to be administered by the Department of Business, Energy & Industrial Strategy (BEIS).


An initial £62 million SHDF "Demonstrator Programme" was launched in October 2020 with funding awarded to 17 local authorities across England & Scotland for 19 projects. Among the projects awarded funding was a bid from ARCH Executive Board member Warwick District Council. Projects are expected to complete by December 2021.


Following on from the SHDF Demonstrator projects, BEIS launched the SHDF "Wave 1 Competition" on 23 August 2021. The competition runs for 8 weeks until 15 October 2021 and up to £160 million is available to local authorities and housing associations and successful applicants will be announced in early 2022. Applications for the fund should be based on a completion date of 31st January 2023.


The Government say that in total, through this first wave of funding, up to 38,000 social housing properties - with energy performance certificate (EPC) ratings of D or below - will have the chance to receive energy efficiency upgrades, including installation of insulation and more energy efficient doors, windows and heating systems.


The maximum grant funding for retrofit works to bring existing properties up to EPC C or above will depend on the existing EPC rating of the property and will be capped accordingly:


  • EPC D = £10k,
  • EPC E = £12k,
  • EPC F/G = £16k.


It is expected that up to 15% of total project costs can be allocated to administration and ancillary costs and registered providers must contribute at least a third of total eligible costs.


Full details of the bidding criteria and competition guidance notes are available on the Government website.


A Technical Assistance Facility (TAF) has also been established to provide technical support for all social housing landlords interested in accessing funding from the Social Housing Decarbonisation Fund. It will help with stock analysis; bid compilation and technical advice. This technical assistance is being delivered by the Greater London Authority under the name of the Social Housing Retrofit Accelerator (SHRA) which is available to all registered providers of social housing across England who intend to apply to the SHDF Wave 1 competition.

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