The Social Housing Decarbonisation Fund (SHDF) allocated £778 million of government funding to Wave 2.1 in March 2023, according to the Department for Energy Security and Net Zero1. The scheme applies to England and is aimed at local authorities and social housing landlords, funding energy performance measures in social homes1.
Wave 2.1 is expected to see proposed energy performance improvements to around 90,000 social homes1. The fund's stated purpose is to upgrade social housing stock currently below Energy Performance Certificate (EPC) band C up to that standard, and to facilitate the subsequent widespread adoption of decarbonised heating systems1. The department lists its aims as delivering warm, energy efficient homes, reducing carbon emissions, tackling fuel poverty, supporting green jobs, developing the retrofit sector, and improving the comfort, health and well-being of social housing tenants1.
"Wave 2.1, allocated £778 million of government funding in March 2023. Wave 2.1 will see proposed energy performance improvements to around 90,000 social homes."
The allocation sits within a series of funding rounds. The SHDF Demonstrator awarded around £60 million and saw up to 2,000 homes improved to at least EPC band C, with over 1,000 local jobs supported1. Wave 1 awarded around £179 million for delivery from 2022 to 2023 and saw energy performance improvements in up to 20,000 social housing properties, reducing bills and carbon emissions1. Wave 2.2 was allocated £75.5 million of grant funding in April 2024, building on the allocations made under Wave 2.11.
| Round | Funding | Homes |
|---|---|---|
| Demonstrator | around £60 million | up to 2,000 improved to at least EPC band C |
| Wave 1 | around £179 million | up to 20,000 properties |
| Wave 2.1 | £778 million | around 90,000 social homes (proposed improvements) |
| Wave 2.2 | £75.5 million | not stated in the collection |
The collection page carrying these figures was withdrawn on 23 September 2024, and the fund has been replaced by the Warm Homes: Social Housing Fund1. The page states that applications are no longer accepted1. The collection does not set out how the £778 million is divided between landlords, which measures are eligible, or what happens to homes that do not reach EPC band C; those details are not reported on the collection page1.
Why it matters for households
Social housing tenants do not apply for this funding themselves; their landlord does. The practical effect for a household is whether the home it rents receives insulation, glazing, heating controls or other energy performance measures, and whether that work lifts the property to EPC band C or above. A home at that standard typically needs less energy to stay warm, which bears directly on running costs and on how exposed a household is to price movements. The fund's stated link to decarbonised heating systems also matters for homes on gas: the measures are positioned as a step towards changing how a home is heated, not only how much heat it loses. For tenants in homes still below band C, the collection does not say when or whether work will reach them. Social housing landlords considering the successor scheme can check whether social housing is eligible for Boiler Upgrade Scheme grants, and the wider landscape of support is set out in the grants and schemes hub.
What happens next
The SHDF collection was withdrawn on 23 September 2024 and replaced by the Warm Homes: Social Housing Fund1. The collection lists notices for Wave 2.2 on 14 February 2024, Wave 2.1 on 2 October 2023, Wave 1 on 21 October 2021 and the Demonstrator on 24 March 2021, all marked closed to applications1. Successful bids for Wave 2.1 were published on 30 August 2023 and for Wave 2.2 on 18 March 20241. No further rounds under the SHDF name are listed on the collection page1.