The Department for Energy Security and Net Zero withdrew the Social Housing Decarbonisation Fund (SHDF) collection on 23 September 2024, stating that applicants can no longer apply and that the fund has been replaced by the Warm Homes: Social Housing Fund1. The collection page, published on 13 May 2024, applies to England and covered funding for local authorities and social housing landlords to improve the energy performance of social homes1.
The SHDF ran in four rounds. The 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 properties1. Wave 2.1 allocated £778 million of government funding in March 2023, with proposed improvements to around 90,000 social homes1. Wave 2.2 allocated £75.5 million of grant funding in April 2024, building on the previous wave1.
The fund's stated purpose was to upgrade social housing stock below Energy Performance Certificate (EPC) band C up to that standard, support the installation of energy performance measures, and facilitate the subsequent widespread adoption of decarbonised heating systems1. Its listed aims included 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.
"This collection was withdrawn on 23 September 2024"
Separate analysis published on 1 October 2024 by the fuel poverty charity National Energy Action and heat pump manufacturer Kensa states that the Warm Homes: Social Housing Fund replaces the Social Housing Decarbonisation Fund2. That analysis reports that almost one in four electrically heated homes in England are fuel-poor, with fuel-poverty gaps averaging £857, more than double the national average of £4172. It gives gaps of £341 for electrically heated EPC D properties, £1,028 for EPC E, and £1,823 for EPC F and G2.
| Round | Funding | Homes | Date |
|---|---|---|---|
| Demonstrator | around £60 million | up to 2,000 to at least EPC C | 24 March 2021 notice1 |
| Wave 1 | around £179 million | up to 20,000 | 21 October 2021 notice1 |
| Wave 2.1 | £778 million | around 90,000 proposed | March 20231 |
| Wave 2.2 | £75.5 million | not stated | April 20241 |
The same analysis states that the October 2024 price cap rise could see electrically heated homes paying close to £2,500 a year, against the £1,717 cap for dual fuel homes set by Ofgem, and that electricity has risen to 24.5p per kWh2. It estimates six million households are living in fuel poverty across the UK, with at least 13% of households in England affected2. It states that nearly 250,000 social homes still rely on outdated electric heating, and that networked heat pumps could save electrically heated households over 67% on annual heating costs, cutting bills by over £1,200 a year2. These figures come from the manufacturer and charity, not from government.
Why it matters for households
For social tenants, the practical effect is that the grant route named on the closed collection no longer accepts applications1. Funding decisions for energy performance measures in social homes now sit with the Warm Homes: Social Housing Fund1. The wider grants-schemes landscape for household energy improvements has therefore changed for landlords and the tenants they house.
The figures above set out why the fabric of a home and its heating system determine exposure to prices. Households on direct electric heating carry a fuel poverty gap more than double the national average, and the gap widens as EPC ratings fall2. Insulation and heating upgrades are the levers that change a home's energy independence, because they reduce the amount of purchased energy needed to keep it warm. Social housing tenants do not choose those upgrades; their landlord does, and the landlord's access to grant funding shapes what happens. Whether the replacement fund matches the pace of the previous rounds has not been reported.
What happens next
The SHDF collection was withdrawn on 23 September 2024 and no further application rounds under it are listed1. The Warm Homes: Social Housing Fund is named as its replacement1. No allocation figures, wave dates or eligibility details for the replacement fund are given in these sources. For tenants in social housing who are not on a heat network or a landlord-led scheme, the separate question of whether social housing can access Boiler Upgrade Scheme grants is covered in Can social housing get Boiler Upgrade Scheme grants?.