Latest News | 24 August 2022

Support for public sector delivering decarbonisation

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Willmott Dixon outlines how it can help applications for £635m of government funding available for decarbonisation.

The Public Sector Decarbonisation Scheme Phase 3b was announced on Tuesday 2nd August and is available to public sector organisations to upgrade heating systems in public buildings, to ones often powered by cleaner, cheaper and renewable energy.

The funding is open to organisations such as NHS Trusts, emergency services, universities, colleges, schools and local authorities.

The Phase 3b Application Portal is expected to open in September and will close as soon as the scheme is fully subscribed.

Willmott Dixon has supported customers to successfully deliver projects funded through previous rounds of PSDS funding, and is offering its help to help develop proposals, prepare applications and deliver projects within the funding timescales.

The PSDS scheme enables low carbon heating systems, including heat pumps and electric heating to be installed in public buildings, with many projects also installing energy efficiency measures such as wall and roof insulation, double glazing and LED lighting, and renewables such as solar panels.

Phase 3b will allocate up to £635m of funding to public sector organisations, to be spent in financial years 2023/24 and 2024/25. This is split by financial year, with up to £402m to be allocated for 2023/24 and up to £233m to be allocated for 2024/25. This fund must be complimented by alternative funding committed to cover the cost of ‘like for like’ heating systems.

The funding is provided by the Department for Business, Energy and industrial Strategy and delivered by Salix Finance. The PSDS supports the Government’s net-zero and clean growth goals.

For further information, please contact Jo Mills, head of decarbonisation at

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