No Surprise: PSDS Funding Pulled Following LCSF Closure

This week’s announcement that the government has ended further investment in the Public Sector Decarbonisation Scheme (PSDS) sadly came as no surprise, particularly following the closure of the Low Carbon Skills Fund (LCSF) earlier this year.

It’s now official: no new funding rounds will be introduced for the PSDS beyond the projects that have already been awarded. The news came alongside the government’s latest Spending Review, and although it’s been framed as a “difficult decision,” I think many of us saw it coming.

For those of us working closely with schools, MATs, and public sector bodies, this is yet another blow in the challenge to decarbonise our ageing estates. The reality is that the demand for funding in this space has been consistently high and rightly so. But with limited rounds, fast-changing criteria, and now a complete withdrawal of future funding, the message to the sector feels increasingly uncertain.

What’s Still Funded?

The good news is that all currently awarded PSDS projects remain fully funded:

Phase 3c funding runs until 31 March 2026
Phase 4 funding runs until 31 March 2028

What Does This Mean for Schools?

For schools that haven’t yet secured PSDS funding, this marks the end of the road, for now. That said, it’s more important than ever to focus on:

Energy efficiency projects that align with compliance priorities
Maximising the potential of CIF and Urgent Capital Support streams
Keeping well-documented estates data to be prepared when new funding opportunities arise

We know that net-zero isn’t going away and there will be future schemes and incentives. But for now, strategic planning and making the most of alternative funding routes is key.

Let’s Talk

If you’re unsure how this announcement affects your school, or you’re planning your next capital bid and want to build in energy-saving elements, we’re here to help. Whether it’s bid writing, feasibility planning or full project management we work closely with you to secure funding and deliver compliant, impactful projects that truly make a difference.