What is the Public Sector Low Carbon Skills Fund?

To make Net Zero more achievable, the UK Public Sector is taking a strong stance by setting a target to reduce emissions in public sector buildings by 75% by 2037 (against a 2017 baseline). With over 300,000 individual properties under its wing, accounting for around 2% of the UK’s total emissions, the Public Sector Low Carbon Skills Fund has come to support.

The Public Sector Low Carbon Skills Fund (LCSF) offers grants to public sector organisations to develop heat decarbonisation plans. These plans help prepare for the procurement and delivery of heat decarbonisation and energy efficiency works. This includes investing in upskilling and seeking expert advice to create more robust energy efficiency strategies.

The Department for Energy Security and Net Zero of the British government manages the LCSF scheme, which is delivered by Salix Finance. This phase of the programme aims to strategically position organisations and better prepare them to align with the UK’s 2050 net zero target.

Low Carbon Skills Fund Phase 5 has been announced for the new financial year 2024 to 2025. With £16 million of funding available, public sector organisations in England now have the opportunity to harness the technical skills and expertise needed to develop robust heat decarbonisation plans that will pave the way for Net Zero. You can submit your applications for LCSF Phase 5 between 2pm on 17 April 2024 and 2pm on 1 May 2024.

Get prepared for the application: Contact Us

What are the timelines?

– Application portal opens: 17th April 2024 at 2pm
– Application portal closes: 1st May 2024 at 2pm
– Grant offers: by the end of July 2024
– Project completion: no later than 31st March 2025

What is changing for LCSF Phase 5?

• Allocation process: Applications will no longer be allocated on a first-come-first-served basis. New allocating system has been implemented. Applications will be sorted into a randomised order prior to assessment, and assessed in the resulting order. It will help ensure a more fair and unbiased evaluation process. 
• Application form & scoring framework: There is a new application form for LCSF Phase 5, and only one application per organisation will be permitted. It will also be accompanied by a scoring framework to facilitate comprehensive and consistent assessment of applications against scheme criteria.
• Funding allocation: Available funding will be divided across three groups:

           – 34% of funding will be allocated to applications with a value of £100,000 and below.

           – 38% of funding will be allocated to applications with a value between £100,001 and £500,000.

           – 28% of funding will be allocated to applications with a value between £500,001 and £1,000,000.

• Tenancy arrangements: Organisations must have sufficient remaining lease time to develop a heat decarbonisation plan and replace fossil-fuel heating systems for buildings occupied under long-term lease arrangements.
• Wider eligible activities: LCSF Phase 5 provides grant support for 7 activities related to heat decarbonisation in public sector buildings, including strategy development, feasibility, and design. 
• End-of-life requirement: For the building to be eligible during the feasibility and design stages, it must be equipped with at least one heating system at the end of its life.