Public Sector Funding Schemes | PSDS & LCSF

Public Sector Decarbonisation Scheme & Low Carbon Skills Fund

The Public Sector Decarbonisation Scheme (PSDS)

The Public Sector Decarbonisation Scheme, formerly funded by the Department for Energy Security and Net Zero, supported public buildings across the UK—such as schools and hospitals—in replacing fossil fuel heating systems with cleaner alternatives.

With a focus on a whole building approach, the scheme enabled applicants to pair heat decarbonisation with energy efficiency upgrades and other enabling works. These included improvements to insulation, lighting, and building controls, helping to lower emissions and drive long-term sustainability.

The Non-Domestic team assisted a variety of organisations to apply for more than £13m of funding across the projects. Following the most recent and final phase of the PSDS, our team achieved the following:

  • Disseminated the significant scheme changes to organisations in the region.
  • Organised 56 energy audits with the support of Nottingham City Council’s Energy Services Team.
  • Piloted a new Heat Decarbonisation Plan service in partnership with Nottingham City Council.
  • Collaborated with key stakeholders to provide reports for projects particularly those based in the Worcester region.
  • Supported in the submission of a total of 6 fantastic applications – 4 of which were successful.

The Low Carbon Skills Fund provides grants for public sector organisations to engage the specialist and expert advice and skills required to develop a heat decarbonisation plan. 

Having a robust heat decarbonisation plan will put your organisation in a strong position to take the next steps in decarbonising. These plans enable you to develop detailed project proposals that will help you to apply for any future grant funding for capital decarbonisation measures such as the Public Sector Decarbonisation Scheme , which provides grants for public bodies to fund heat decarbonisation and energy efficiency measures. This means your organisation can think more strategically and be better prepared for future decarbonisation opportunities. 

The Low Carbon Skills Fund (LCSF)

In March 2024, funding was made available for the Phase 5 Public Sector Low Carbon Skills Fund (LCSF5), delivered in 2024/25. The scheme was designed to provide grants for public sector organisations to engage specialist, expert advice and skills required to create a robust heat decarbonisation plan and/or detailed designs to prepare for heat decarbonisation and energy efficiency works.

LCSF5 received more than 700 applications during the two-week application opening period. The Department for Energy Security and Net Zero awarded £15 million worth of grants to 118 organisations to support their green plans. 

Across the Midlands, The Non-Domestic Team provided tailored support to public sector organisations to develop quality applications to kickstart their projects.

Services included:

  • Portfolio analysis
  • Eligibility assessment 
  • Business case support
  • Application support

Through our work, we supported 12 organisations across the Midlands ranging from local authorities to schools and emergency services throughout the process in their application submission – 4 of those received grant offer letters following successful applications. 

Both schemes have played a pivotal role in accelerating the transition to net zero across the public sector.

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