Social Housing Decarbonisation Fund (SHDF)
Funding combustion-free retrofit works that bring social homes up to energy-efficient standards while cutting carbon and improving tenant wellbeing.
Upgrading social housing stock for a low carbon future
The Social Housing Decarbonisation Fund (SHDF) is a UK Government retrofit programme designed to upgrade social homes, raising their energy performance to EPC C or better while reducing carbon emissions and fuel poverty. The fund is deployed in multiple waves, each with targeted funding allocations for eligible projects in England.
How the scheme works
SHDF operates through a series of funding waves:
- Wave 1 launched in August 2021 and delivered until early 2023, allocating around £179 million to improve approximately 20,000 social homes.
- Wave 2.1 followed, with £778 million for delivery through to 2025.
- Wave 2.2 added another £80 million in 2024.
Each project must adopt a fabric-first approach—starting with insulation and energy-saving improvements—then adding low-carbon systems where feasible. Properties must typically reach EPC C or better and meet space-heating demand targets.
Eligibility and funding
The scheme is open to public sector bodies in England, including:
- Local authorities.
- NHS Trusts.
- Schools, academies, and universities.
- Emergency services.
- Central government departments.
Some organisations in devolved regions may also be eligible if they are responsible for reserved functions.
Funding levels vary by phase and project size. There is no strict per-property cap, but all projects must meet value-for-money requirements. In recent phases, grants have ranged from hundreds of thousands to several million pounds per project, depending on scope and scale.
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Our role in delivery
While we don’t manage PSDS applications, we work with successful applicants to deliver their projects to the highest standard. We:
- Ensure all works meet the technical requirements of the funding.
- Manage installations to minimise disruption.
- Communicate clearly with building users and stakeholders.
- Provide full compliance documentation for grant claims.
Why Work With LMF?
We’re not just an installer — we’re a long-term delivery partner for social housing providers seeking impact, compliance, and value.
- Award-Winning, Accredited Installer - With over 30 industry awards and accreditations including TrustMark, PAS 2035, MCS, and NAPIT, we’re trusted by councils, housing associations, and energy suppliers nationwide.
- Experienced in Social Housing Delivery - We understand the unique challenges of social housing, from compliance to resident care. Our teams are trained to work respectfully in occupied homes and vulnerable households.
- Scalable, End-to-End Service - From small-scale programmes to multi-site rollouts, we provide a complete solution — from initial assessments to funding, installation, and compliance.
- Dedicated Project Teams - You’ll have a single point of contact backed by a multi-disciplinary team, including retrofit coordinators, surveyors, and resident liaison officers.
- Transparent Reporting and Compliance - We provide clear documentation, post-installation reporting, and ongoing support to help you meet your obligations with confidence.
