Woodlands photography
Home / Insights / Industry news / Phase 5 of the Low Carbon Skills Fund Has Been Confirmed

Phase 5 of the Low Carbon Skills Fund Has Been Confirmed

A new phase of the Low Carbon Skills Fund has been recently confirmed for the financial year of 2024/25, with £16 million of funding available.

A new phase of the Low Carbon Skills Fund has been recently confirmed for the financial year of 2024/25, with £16 million of funding available. Phase 5 will start accepting applications from eligible public sector organisations from Wednesday 17th of April 2024 at 2pm.

Those who partake in the scheme’s application process will be informed of the outcome by the end of July and, if successful, will be expected to deliver the funded project by the 31st of March 2025.

What is the Low Carbon Skills Fund?

One of the greatest challenges to reaching net-zero by 2050 is decarbonising how buildings are heated. However, to replace fossil fuel-based heating systems with alternative options, expert support is required.  

Run by the Department for Energy Security and Net Zero (DESNZ) and delivered by Salix Solutions, the LCSF provides grants to help public sector bodies engage with specialists who can offer advice on developing a Heat Decarbonisation Plan to prepare for heat decarbonisation and energy efficiency works. In turn, this can simplify the creation of project proposals and support their eligibility for the Public Sector Decarbonisation Scheme, another funding programme that promotes decarbonisation and energy efficiency measures.  

What’s new with Phase 5?

As opposed to the previous phases, funding will not be awarded on a first come, first serve basis. Instead, once the portal closes on 1/5/2024 at 2pm, all applications will be sorted in a randomised order prior to being assessed. Therefore, no rushing is needed on this occasion as you will have two weeks to submit all the required information to ensure eligibility.

Grant value ranges

As with Phase 4, the total funding will be divided into three grant value ranges and include an overall grant value cap of £1,000,000.

  1. 34% of funding for projects of £100,000 and below.
  2. 38% of funding for projects between £100,001 and £500,000.
  3. 28% of funding for projects between £500,001 and £1,000,000.

End of life heating system requirement

To be eligible for the LCSF, certain funded project requests will need to be accompanied by an end of life heating system requirement, indicating that its usefulness has expired prior to the predicted date or is over 10 years old. This new requisite has been added to prioritise projects that need immediate boiler or plant replacement.

Other changes

  • Only one application can be submitted per organisation.
  • To be eligible for Phase 5, applicants must own the building that requires project funding or prove extended occupancy through a long-term lease arrangement.
  • More activities eligible for funding have been added to Phase 5 compared to the three options present in Phase 4. For further details, please visit Salix’s guidance document.  

We can support with your Heat Decarbonisation Plan

As a consultancy that has assisted public sector organisations with their decarbonisation goals, we have the expertise to develop a plan to reduce your heating-related carbon emissions.

One of our clients, Bedford College Group, needed support creating a Salix compliant Heat Decarbonisation Plan after receiving government funding. We helped identify energy-saving opportunities and produced a decarbonisation strategy which led to increased energy efficiency and a reduction in carbon emissions.

To learn more, please view our case study.

Inspired is the UK’s leading energy and sustainability advisor who supports thousands of public sector organisations with their energy and sustainability needs.

If you would like expert support with your Heat Decarbonisation Plan, please get in touch today on 01772 689250 or at [email protected].