Social housing providers will be able to apply for the first official round of the Social Decarbonisation Fund, with £160m available for projects.

It follows on from a pilot round of funding of £62m, that was announced back in March 2021.

It is hoped that in this first round of funding, up to 38,000 of the UK’s worst energy-performing social housing properties – with energy performance certificate (EPC) ratings of D or below – will have the chance to receive energy efficiency upgrades.

This investment will help tenants save around £170 per year on energy bills, while making their homes warmer and reducing carbon emissions.

Today’s is the first wave of funding out of a total £3.8bn to be spent over a 10-year period.

Minister for Business, Energy and Corporate Responsibility, Lord Callanan, said: “Today’s announcement is a vital step forward in eradicating UK fuel poverty and improving the lives and homes of low-income households, all while creating new work for local plumbers, builders and tradespeople who will be building homes fit for our greener future.

“With a real appetite among councils and housing associations to make their homes cheaper to heat and warmer to live in, this investment is putting the power in the hands of the people who know their communities best, allowing the right decisions to be made for each home they manage while ensuring the very best for their tenants and the environment.”

Taken together the funding will ensure that the government is achieving its aspiration to ensure as many homes as possible reach EPC Band C or above by 2035 in a way that is practical, cost effective, and affordable.