Phase 5 Low Carbon Skills Fund

What is the Public Sector Low Carbon Skills Fund?

As approximately 30% of the UK’s greenhouse emissions stem from the operations of buildings, the industry’s reliance on fossil fuel heating systems is one of the major obstacles to achieving the 2050 Net Zero target.

To help tackle this issue, the Public Sector Low Carbon Skills Fund (LCSF) supports a range of public sector organisations to transition towards sustainable practices, with a focus on reducing energy consumption, creating and refining heat decarbonisation plans, and overall implementing decarbonisation measures.

Having a comprehensive heat decarbonisation plan in place actively empowers organisations to implement low-carbon initiatives, facilitating the development of project proposals to access future grant funding.

Phase 5 Low Carbon Skills Fund

Ran by the Department for Energy Security and Net Zero Zero (DESNZ), and delivered by Salix, Phase 5 will see up to £16m of funding available.

The application window will open on Wednesday 17 April 2024 and close on 1 May 2024. Those who are awarded the fund must complete their project by Monday 31 March 2025.

Phase 5 Low Carbon Skills Fund- what’s new?

• Application assessment process

A key change to the Phase 5, compared to previous phases, is the transition away from a first-come-first-served basis to a randomised order for assessment. This change follows feedback received by Salix to enhance the user experience, ensuring fairness in evaluation procedures.

• Application form

Applicants will now have to complete an Application Form via the application portal, which comprises a scoring framework for select question. This is to ensure a consistent evaluation of applications in accordance with the scheme criteria.

• End-of-life requirement

For certain funded activities, Phase 5 will prioritise buildings with heating systems that are nearing the end of their functional life, directing more funding to projects that urgently need their heating systems replaced.

Feasibility-stage and design-stage projects must have a building that includes at least one heating system that is either older than 10 years or has reached the end of its expected lifespan to be eligible. However, organisations can still include buildings with newer heating systems for activities in the strategy stage.

• Application limit

Due to the historically high demand for the LCSF, organisations are limited to a maximum of one application.

• Tenancy arrangements

Applicants must either own or hold a long-term lease of the structure they are applying for. When leasing, it is essential that the lease duration allows for the full implementation of the decarbonisation measures and that the organisation remain occupants of the building to reap the full benefits.

• Expanded eligible initiatives

Where Phase 4 limited funding to one of three options (developing or upgrading a heat decarbonisation plan; creating designs for standalone project based on existing heat decarbonisation plans; or a combination of the two), Phase 5 expands the eligible activities and provides applicants with a broader range of options to pursue their decarbonisation goals. This was incorporated after the scheme took on board feedback from previous phases, resulting in more funding options and simplifying the process to apply for specific activities.

To help applicants better understand the new available activities for funding, Salix has released an in-depth guidance document. The document helps illustrate the new ‘three-staged approach to planning’ through the strategy, feasibility and design stages. This has been introduced to aid applicants in identifying how different activities contribute to a comprehensive decarbonisation plan.

Applicants have the flexibility to choose from various combinations of activities to apply for, but they must align and explain their project within the stages outlined in the guidance. Additionally, the application questions have been revised to mirror these adjustments.

Grant value brackets

The available funding has been divided in the same manner as in Phase 4:

• 34% for projects up to £100,000
• 38% for projects between £100,001-£500,000
• 28% for projects between £500,001-£1,000,00

How Eddisons can help

With our track record of securing millions through various government funding schemes, our building and project consultants are best positioned to gain the most resources for your organisation.

Understanding your specific markets and identifying the best sustainable solutions is a core part of our strategy, regardless of your sector or objectives.

Our education specialists and decarbonisation team are both on hand to provide bespoke advice whatever your situation – for more information visit our dedicated education website, Eddisons Education.