New Energy Upgrades for Public Buildings Announced

The Government has announced a new round of funding to improve energy efficiency across public sector buildings, aiming to reduce energy costs and cut carbon emissions.

Through the latest phase of the Public Sector Decarbonisation Scheme, £557 million has been allocated to support over 1,000 projects across England. The funding is designed to help public bodies—such as schools, hospitals, leisure centres, and council buildings—install modern, energy-efficient technologies that lower energy bills and contribute to net zero targets.

Energy Minister Lord Callanan stated that the upgrades will deliver long-term savings for taxpayers while supporting the UK’s environmental commitments.

The funded projects will implement measures including:

  • Installing low-carbon heating solutions, such as heat pumps.
  • Upgrading insulation and window systems.
  • Replacing older, inefficient lighting with modern LED alternatives.

This round of funding is expected to cut lifetime emissions by 7.4 million tonnes of CO2—the equivalent of removing around 3.2 million petrol cars from the road for a year.

The announcement forms part of the Government’s wider net zero strategy, which includes efforts to decarbonise public sector buildings and reduce overall reliance on fossil fuels.

Regional Funding Breakdown

As of May 2025, the regional allocation for Phase 4 of the Public Sector Decarbonisation Scheme is as follows:

  • North East: £65,191,456
  • Yorkshire and the Humber: £81,262,778
  • North West: £116,815,617
  • East Midlands: £73,405,602
  • West Midlands: £84,306,700
  • East of England: £29,149,553
  • South East: £35,720,404
  • South West: £30,002,246
  • Greater London: £113,914,685
  • Wales: £2,500,000
  • Across Regions: £1,325,000

Source: Department for Energy Security and Net Zero


This article shares information from an official Government press release.

The Rural Services Network welcomes feedback from members—have you or your community benefited from or been impacted by this round of funding?

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