It has been announced this morning that there will be no funding round for the Low Carbon Skills Fund (LCSF) in the financial year 2025–2026.
This announcement will come as a disappointment to many schools, academies, and trusts that had planned to apply for funding to support the development of Heat Decarbonisation Plans (HDPs) and other preparatory work for sustainable estate improvements.
What Is the Low Carbon Skills Fund?
The LCSF has, in previous rounds, provided valuable grant funding to public sector organisations to enable them to:
- Develop Heat Decarbonisation Plans (HDPs)
- Identify energy-saving and carbon-reduction opportunities
- Lay the groundwork for future capital funding bids, such as PSDS (Public Sector Decarbonisation Scheme)
For schools, it has served as a strategic first step in understanding how to reduce emissions, future-proof their estates, and prepare for net zero targets.
What Does This Mean for Schools and Trusts?
The absence of an LCSF round in 2025–26 means that public sector bodies, including schools and academies, will not be able to access this specific funding stream for energy planning next year.
This could present challenges for those looking to take the next step in their decarbonisation journey, particularly as many capital funding routes (e.g. PSDS) require an HDP as part of the application process.
What Can You Do Now?
Although the LCSF will not be available, there are still ways to make progress:
- Review Existing Energy Data
Now is a good time to collate utility data, energy audits, and site condition surveys. This will give you a solid foundation for any future funding bids. - Explore Alternative Routes
While the LCSF is paused, other funding streams and sustainability grants may still be available. - Consider Investing Strategically
Where budgets allow, commissioning a Heat Decarbonisation Plan independently could still prove to be a valuable long-term investment—especially if your school is aiming to access future rounds of PSDS or pursue wider sustainability goals. - Stay Informed
We expect further updates from Salix and the DfE throughout the year. We will continue to monitor developments and keep our clients informed of any new opportunities.
We’re Here to Help
At Education Consultancy Services Ltd, we’ve helped schools and trusts across the UK secure millions in funding for building improvements, energy efficiency, and compliance works. While this LCSF update is a setback, it doesn’t have to pause your progress.
If you had planned to apply for LCSF funding—or if you’re unsure what this means for your school’s strategy—get in touch. We’re happy to help review your current position and work with you to identify the best next steps.
Stay informed. Stay proactive. And let’s keep building greener, safer schools—together.