Low Carbon Skills Fund (LCSF) Phase 4 Announced

Phase 4 of the Low Carbon Skills Fund (LCSF) has been announced by Salix Finance and will be open for applications from the 26^th April at 2pm for eligible public sector bodies.

The Department for Energy Security and Net Zero (DESNZ) has made up to £17 million of funding available for this phase to help public sector organisations to cover the costs of decarbonisation.

What’s new with Phase 4?

Salix has introduced improvements to Phase 4 based on learnings from the previous phases and working with DESNZ to design the model for delivering this next phase. Feedback from clients, stakeholders, and decision makers has resulted in several new elements that applicants should be aware of.

Grant value caps

For Phase 4, grant value caps are being introduced to divide funding across three grant value ranges – this also includes an overall grant value cap of £1,000,000.

1. 34% of funding for projects up to £100,000
2. 38% of funding for projects between £100,001 – £500,000
3. 28% of funding for projects between £500,001 – £1,000,000

The grant value caps help to ensure that the available funding is distributed across a range of projects, recognising that the cost of decarbonisation plans can vary significantly.

Standalone detailed designs funding

There are now 3 funding options for the Low Carbon Skills Fund:

1. Funding to develop or improve a heat decarbonisation plan incorporating any output outlined in the scheme criteria section.
2. Develop standalone detailed design(s) from pre-existing heat decarbonisation plan(s).
3. A combination of options one and two above, to develop or improve a heat decarbonisation plan(s) and develop a standalone detailed design(s) from a pre-existing heat decarbonisation plan(s).

Earlier application window

Salix Finance has made the decision to bring the application window forward to April 2023, much earlier than in previous years. This is due to feedback received about timeframes, in particular between the LCSF and the Public Sector Decarbonisation Scheme (PSDS).

The hope is that by bringing the LCSF application window forward, organisations will be able to complete detailed designed by Autumn 2023 in preparation for the next PSDS phase or other available funding.

Public sector organisations should act quickly

The funding is awarded on a first come, first served basis which means to secure enough funding for your organisation’s decarbonisation plans, you’ll need to act fast to ensure you application is submitted on time.

Gathering all the information needed to submit a complete application can be complex and time consuming. That’s where support from a consultant, like Inspired, can support you through the application process and ensure a timely submission to increase your chances of securing the funding.

Learn more about how we can support you with the LCSF here.