17 June 2025 
Joni Rhodes, Projects and Development Manager
When Phase 4 of the Public Sector Decarbonisation Scheme closed to applications in November 2025, it was anticipated that capital funding would be available from until 2027/28. However, in the wake of the Spending Review it has been announced that no further investment will be made into the scheme beyond currently awarded projects.
Delivery partners Salix are currently delivering Phase 3c and Phase 4 of the Public Sector Decarbonisation Scheme and work supporting these projects will continue until these projects are complete and operational. For Phase 3c, projects, grant funding will continue until 31 March 2026 and for Phase 4 up until 31 March 2028.
PSDS was launched in 2020 to support public sector organisations in England to install low carbon heating and energy efficiency measures in their estates, and has been utilised widely by universities.
In total, more than £3.5 billion has been issued through nearly 1,400 Public Sector Decarbonisation Scheme grants up to the end of 2027/28. More than £1 billion of Public Sector Decarbonisation Scheme budget will still be invested between now and 2028.
