PSDS closed to new applications. Government confirmed no further PSDS investment beyond awarded projects (Spending Review 2025). STATUS: CLOSED

Public sector decarbonisation scheme · schools

The PSC scheme for schools, without the marketing copy.

The Public Sector Decarbonisation Scheme (PSDS) was the main capital grant route at school scale for heat-pump and fabric retrofit. It is closed to new applications, and the government has confirmed no further PSDS investment beyond currently-awarded projects. This site answers the eligibility question in 30 seconds, costs your scheme against the £510/tCO2e Phase 4 Grant Carbon Cost ceiling, and routes you to the live alt-funding programmes that have replaced it.

Direct answer · 10 August 2026

PSDS Phase 4 closed for applications November 2024 [Salix]. At the June 2025 Spending Review the government confirmed no further PSDS investment beyond currently-awarded projects [Salix]; awarded projects stay funded (Phase 3c delivery to 31 March 2026, Phase 4 to 31 March 2028) but no Phase 5 has been announced. The most recent binding rule was Phase 4's £510/tCO2e Grant Carbon Cost ceiling, with a minimum 12% applicant contribution for the like-for-like counterfactual. State-funded schools displacing gas, oil or LPG heating on owned estate were in scope; independent schools and PFI sites without landlord consent were not. Live alternatives for schools right now: DfE Renewal & Retrofit (£710m, April 2026 [DfE]), CIF for academies, GB Energy schools solar, Warm Homes Plan.

Eligibility wizard · 3 questions

Answer all three to see the outcome. Three questions, roughly 30 seconds.

Applicant contribution
≥12%
Like-for-like counterfactual, Phase 4
£/tCO2e ceiling
£510
Lifetime GCC, Phase 4 binding
School install £/m² band
£280–£540
Heat pump + fabric, mid case
Phase 5 / future funding
Ended
No further PSDS investment, SR 2025
Oliver Wakefield-Smith
Founder · Digital Signet
Verified for Phase 4 (final phase) · refresh expected on any Salix or DESNZ policy change

Three outcomes. One lane each.

Where are you in the bid stage?

The PSDS pipeline runs pre-feasibility, feasibility, application, award, delivery, reporting. Each stage page is built for the workflow the bursar actually owns at that point. No fluff stages.

Which measures pass the £510/tCO2e ceiling?

Indicative model, school-scale assumptions, gas displacement, tested against the £510 Phase 4 ceiling. Full method on the VfM ceiling page. Measure mix reflects the published Phase 3 and Phase 4 funded-project lists [DESNZ].

MeasureLifetime kgCO2eCapital ££ / tCO2evs £510
Loft and cavity insulation850,000£140,000£165PASS
LED relamp (bundled)320,000£85,000£266PASS
Fabric-first package1,100,000£310,000£282PASS
Air-source heat pump (with fabric)1,500,000£480,000£320PASS
Air-source heat pump (no fabric)900,000£420,000£467PASS
Ground-source heat pump (small site)720,000£430,000£597FAIL

Live funding routes now PSDS has closed

£710m programme announced April 2026. State-school estate; allocation-based.
Publicly-owned solar PV for schools. Separate stream from PSDS.
Annual DfE round. Decarbonisation eligible where it meets a documented condition need.
Cross-government residential-led plan. Limited public-estate touchpoints.
LGA-supported ESCO route. Procurement vehicle, not a grant fund.
Free regional advisory support, expanded post-LCSF closure.

Reference pages