Phase 4 Public Sector Decarbonisation Scheme

We would like to encourage organisations to check the eligibility requirements and read our Phase 4 Public Sector Decarbonisation Scheme Guidance Notes prior to applying. 

Please note, Phase 4 of the Public Sector Decarbonisation Scheme includes changes in eligibility that may impact some organisations looking to apply. The Department for Energy Security and Net Zero has engaged extensively with sector representatives and public sector stakeholders to ensure the eligibility criteria for the upcoming phase is fair.

The Phase 4 Public Sector Decarbonisation Scheme is available for all public authorities that are contracting authorities in England as defined in the Procurement Act 2023. 

To be a public authority under the Act, an organisation should meet at least one of the following tests, and not operate on a commercial basis:  

• The organisation is wholly or mainly funded out of public funds. 
• The organisation is subject to public authority oversight.   

Eligible applicants include:

Central government departments and their arm’s length bodies (set out in Public Bodies as published by the Cabinet Office).  For central government departments where their roles are reserved (i.e., not devolved Governments of Scotland, Wales and Northern Ireland), funding may be used for estates located anywhere within the UK

• Emergency services
• Institutions of further and higher education*
• Local authorities
• Schools within the state education system, including maintained schools, academies, multi-academy trusts and free schools
• Nursery schools maintained by a local authority
• NHS Trusts and Foundation Trusts, including NHS student accommodation

*Higher Education institutions may not be eligible for this scheme if their funding comes mostly from private funding and/or international student fees. Universities will be required to provide evidence on how they meet the definition of public authorities as defined by the Procurement Act 2023 within their application. For more information on this please read the Phase 4 Guidance Notes (Section 4.1). 

Exclusions

• Public Corporations and private sector organisations are not eligible. 
• Registered charities are also not eligible, unless they are also non-departmental public bodies as defined by the Cabinet Office. 
• NHS primary care networks are not eligible unless they are contracting authorities of an eligible body (including NHS trusts) that either own or have a long-term lease agreement, with responsibility for maintenance of the buildings. This does not include NHS property services as these are semi-private. 
• Buildings under leasehold agreements where a risk of commercial gain is present are not eligible. Evidence of the remaining leasehold period must be provided as supporting evidence in your application. 
• Social housing is also not eligible to apply to Phase 4 Public Sector Decarbonisation Scheme.
• In some areas of England, Government has made commitments via devolution agreements to deliver funding for decarbonising public sector buildings differently and in a more devolved way. In these areas, schemes will be run by devolved authorities and eligible applicants in those areas will have to work with those institutions and will not be eligible to apply to the Public Sector Decarbonisation Scheme. We will set out in more detail about what this means in our 'devolved authorities' area.

Enterprises

Please note if there are enterprises as defined in Section 7(1) of the Subsidy Control Act 2022 operating on any sites in your application that would have economic activity impacted by the grant, further information must be provided. For more information on this please read the Phase 4 Guidance Notes (Section 4.1.3).