The sector has welcomed a government move to release £1.25bn under the Social Housing Decarbonisation Fund (SHDF), which is the largest wave to date.
The Department for Energy Security and Net Zero (DESNZ) announced the latest wave of the SHDF this week amid a series of funding announcements to boost the energy efficiency of homes.
DESNZ said £1.25bn from the SHDF would be allocated to “support up to 140,000 social homes to be insulated or retrofitted, improving energy performance and lowering bills”.
The SHDF was established in 2020 with £3.8bn promised over a 10-year period. Three waves of funding have previously been allocated, as well as an initial £61m demonstrator fund.
Kate Henderson, chief executive of the National Housing Federation, welcomed the latest announcement.
She said the funding means “social landlords will be able to plan and invest in further retrofit works that will help lift residents out of fuel poverty, ensuring they live in warm homes that are affordable to heat.”
Other measures include a further £1.5bn for the government’s Boiler Upgrade Scheme to help people in England and Wales install heat pumps.
A new £400m energy efficiency grant will also launch in 2025 to help residents in England pay for bigger radiators and better insulation, DESNZ said.
A new local authority retrofit scheme has also been allocated £500m to “support up to 60,000 low-income and cold homes, including those off the gas grid, with measures such as insulation”, the department said.
Gavin Smart, chief executive of the Chartered Institute of Housing, said the group was “delighted” to see the announcements, “especially the largest wave of the Social Housing Decarbonisation Fund to date”.
He added: “The announcements recognise the leading role that local authorities and housing associations have played in pioneering the retrofit of existing homes, enabling beneficiaries to live warmer, healthier and happier lives.
“Taken together, these schemes will make a huge difference in supporting the ambitions of many housing providers and homeowners to improve the energy efficiency of their homes and transition to low-carbon heating, as well as unlocking significant amounts of private investment.”
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