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SHDF Key Statistics

Funding allocations to date, which measures have been implemented and how many homes have been improved.

1.2m Social Homes in the UK have an EPC rating below band C. The Social Housing Decarbonisation Fund (SHDF) was designed to lift as many of these homes to band C or above, by implementing Energy Efficiency Measures (EEM) with a fabric-first approach (i.e. prioritising insulation).

The £3.8bn fund is to be delivered over a 10-year period, it is one of the initiatives designed to meet the target of Net Zero 2050, by reducing carbon emissions created within the social housing stock.

We’re currently in the third wave of funding, which is set to be the largest allocation so far.

  • SHDF Demonstrator announced funding in January 2021 and awarded around £60m to social landlords across England and Scotland, in order to test the approach.

  • Wave 1 announced funding in March 2022, allocating £179m of funding which was delivered between 2022 to 2023. This created energy efficiency improvements for 20,000 social housing properties.

  • Wave 2.1 announced funding in March 2023, with an allocation of over £778 million of government funding, it is set to improve 90,000 social homes.

  • Wave 2.2 announced funding in March 2024, allocating over £75 million to local authorities and housing associations.

  • Wave 3 will see a huge £1.21bn allocated, in order to improve the energy efficiency of at least 140,000 social homes. SHDF Wave 3 projects will continue to be delivered until 30 September 2028, with specific spending deadlines that recipients must meet.
Lake District SHDF Project, EWI Measures by Proguard Exteriors
Lake District SHDF Project, EWI Measures by Proguard Exteriors

That’s a total allocation of £2.13bn of the £3.8bn originally committed to the fund.​

What has the funding been spent on to date:

The ‘fabric-first approach’ dictates that insulation should be prioritised, where possible. This has resulted in around 60% of the funding being spent on insulation measures in both Wave 1 and Wave 2.1 (statistics for Wave 2.2 are not currently available).

Loft Insulation and Cavity Wall Insulation were widely installed through the scheme. Given that many social housing units have solid walls, External Wall Insulation (EWI) has also been a crucial measure for numerous housing estates.

Wave 1

  • 59% Insulation Measures
  • 22% Window/Door Upgrades
  • 13% Electricity Related Measures
  • 4% Low Carbon Heat Measures

Wave 2.1

  • 57% Insulation Measures
  • 13% Window/Door Upgrades
  • 19% Electricity Related Measures
  • 6% Low Carbon Heat Measures

With a new government coming in, Wave 3 is secure, but we’ll wait to see how the scheme will continue across the rest of its 10 year delivery program, although it’s likely that funding will continue or be matched by a comparable scheme.

Social Housing Decarbonisation Scheme Overview

SHDF Award-winning Project - EWI Measures by ProGuard Exteriors

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