Social Housing Decarbonisation Fund: What Tenants Need to Know

The social housing decarbonisation fund pays for energy upgrades to council and housing association homes in England only. It is now called the Warm Homes: Social Housing Fund, and its earlier waves had installed around 160,100 energy efficiency measures in 73,600 homes by the end of July 2026 (DESNZ statistics). If you rent from a council or housing association in England, your home may be in line for work under the current round, Wave 3, which runs to September 2028. Social housing in Scotland, Wales and Northern Ireland is funded through separate, devolved programmes. This guide explains what the fund covers, what improvements you can expect, your rights during the works, and how to find out whether your home is included.

What Is the Social Housing Decarbonisation Fund?

The Social Housing Decarbonisation Fund (SHDF) is an England-only government programme that gives grants to councils and housing associations to improve the energy efficiency of their homes. Its aim is to bring social homes below EPC band C up to that standard, cutting carbon emissions and energy bills for tenants. The government has since confirmed a minimum standard: social homes in England must reach EPC C by 1 April 2030, with a £10,000 spending exemption for the hardest cases (GOV.UK).

The programme started with a Demonstrator in October 2020, followed by Wave 1 (launched in August 2021 and delivered from 2022 into 2023), Wave 2.1 (2023 to 2026) and Wave 2.2 (2024 to 2026). Wave 3, renamed the Warm Homes: Social Housing Fund (WH:SHF), started delivery in April 2025 and runs to September 2028.

Government grants across the waves add up to about £2.4 billion: £61 million for the Demonstrator, £179 million for Wave 1, £778 million for Wave 2.1, £80 million for Wave 2.2 and £1.29 billion for Wave 3, with landlords adding at least as much again on Wave 3. The fund covers a wide range of improvements including insulation, heating upgrades, window replacements, ventilation systems and renewable energy installations.

What Improvements Are Being Delivered

The SHDF follows a whole-house, fabric-first approach based on PAS 2035 standards. This means each property is assessed individually and a tailored improvement plan is created. Here’s what has actually been installed, from the official statistics:

Loft insulation is the single most common measure in every SHDF wave, and almost every upgraded Wave 2 home with a before-and-after EPC reached band C or above (DESNZ statistics). Many properties receive several measures as part of a coordinated retrofit, such as external wall insulation, new windows, ventilation and upgraded heating controls, designed to work together.

How Much Are Tenants Saving on Energy Bills?

Savings depend on what’s installed and on energy prices. The independent evaluation of the SHDF Demonstrator and the Whole House Retrofit competition, which modelled deep retrofits of around 1,200 homes, estimated these annual bill savings at 2023 energy prices (DESNZ evaluation):

• An average of £1,271 a year per home
• £1,000 to £3,500 a year where the heating system was upgraded, for example from a gas boiler or electric heating to a heat pump
• £300 to £1,500 a year where the heating stayed the same
• 79% of Demonstrator homes reached EPC band C or higher

Treat those as upper-end figures. The evaluation used 2023 prices of 41.70p/kWh for electricity and 11.30p/kWh for gas, well above the October–December 2026 price cap of 26.32p and 7.97p, and at 2021 prices it found savings 71% lower. The work still matters: in England, 12.0% of social housing households were in fuel poverty in 2025, and among social homes still rated D to G the figure was 59.9% (fuel poverty statistics).

Your Rights as a Tenant During SHDF Works

If your home is included in an SHDF retrofit project, you have important rights that your landlord and their contractors must respect:

Advance notice: Your landlord should give you reasonable advance notice of the planned works, with a description of the work, the expected timeline, and any disruption you should prepare for.

Resident liaison officer: Many projects appoint a dedicated resident liaison officer who is your point of contact. They should introduce themselves before work begins and be available throughout the project to answer questions and address concerns. Scheme rules say leaflets and cold calls on their own don’t count as proper resident engagement.

Right to refuse: You generally have the right to decline the improvements, though your landlord may require access for essential works under the terms of your tenancy agreement. Think carefully before refusing: the upgrades cost you nothing, and scheme rules say your energy bills must not go up as a result of the works.

Minimising disruption: Contractors must take reasonable steps to minimise disruption to your daily life. This includes agreed working hours, dust control measures, protection of your belongings, and cleaning up at the end of each working day.

Moving furniture and belongings: For internal works, the contractor should move and protect furniture as needed. For extensive internal wall insulation, you may need to temporarily vacate rooms. Your landlord should assist with this and, in extreme cases, provide temporary alternative accommodation.

Making good: After the work is completed, the contractor must make good any damage or disruption. This includes redecorating walls affected by internal insulation, rehung curtain rails, refitted shelving and reattached fixtures. The finish should be to a reasonable standard.

Complaints: If you are unhappy with any aspect of the work, raise it with the resident liaison officer or your landlord immediately. If the issue is not resolved, you can complain through your landlord’s formal complaints procedure and, ultimately, to the Housing Ombudsman.

How to Find Out If Your Home Is Included

Whether your home is included in the SHDF depends on your landlord and whether they have successfully bid for funding. Here is how to find out:

• Contact your landlord: Your council housing team or housing association should be able to tell you whether your property is scheduled for improvement under the SHDF or WHSF
• Check your landlord’s website: Many local authorities and housing associations publish information about their retrofit programmes online, and GOV.UK publishes the list of landlords funded under Wave 3
• Ask your councillor: Your local councillor can make enquiries on your behalf with the council’s housing department
• Freedom of Information request: If your council is not forthcoming, you can submit an FOI request asking whether they have received SHDF/WHSF funding and which properties are included

If your home isn’t in a funded project, it may still be upgraded: social landlords in England must bring their homes up to EPC C by 1 April 2030 under the new minimum standard, unless an exemption applies. From 2027/28 the government plans to merge this fund and the Warm Homes: Local Grant into a single scheme for low-income households, with more area-based delivery (Warm Homes Plan).

What About Private Tenants and Owner-Occupiers?

The SHDF is exclusively for social housing. If you are a private tenant or an owner-occupier, different schemes may help you:

• Warm Homes: Local Grant (England): for owner-occupiers and private tenants in homes rated EPC D to G with a household income of £36,000 or less, a means-tested benefit or an eligible postcode. Caps are £16,600 for insulation and other efficiency work plus £16,600 for low-carbon heating
• ECO4 (England, Scotland and Wales): funded by energy companies for households on qualifying benefits, but it ends on 31 December 2026 (Ofgem)
• Boiler Upgrade Scheme (England and Wales): £7,500 towards a heat pump for homeowners and landlords
• 0% VAT on energy efficiency products: applies to all residential properties regardless of tenure until 31 March 2027

If you own your home, you can request a free quote through Home Energy Quotes: up to three approved installers who cover your area may contact you. No charge, no obligation.

The Warm Homes: Social Housing Fund (Wave 3)

Wave 3, now called the Warm Homes: Social Housing Fund, builds on the earlier waves. Its main features, from the scheme guidance (GOV.UK):

• £1.29 billion allocated, with just under £1.15 billion offered to 138 projects and landlords matching it at least pound for pound
• A flat grant cap averaging £7,500 per home, plus another £7,500 where off-gas homes get low-carbon heating, and a £20,000 offer for heat pumps in up to 10% of on-gas homes
• More solar: solar panels made up 36% of the measures reported by the end of July 2026
• Resident engagement: landlords must show how they’ll support tenants during and after the works, and scheme rules say your energy bills must not rise as a result
• Quality standards: all work must follow PAS 2035:2023, installers must be TrustMark registered (and MCS certified where relevant), and every measure is lodged with TrustMark

The Warm Homes Plan added more money for 2026/27, and from 2027/28 the government intends to fold the fund into a single low-income scheme. With social homes in England required to reach EPC C by 1 April 2030, most homes still below band C should be upgraded by then or covered by an exemption.

Frequently Asked Questions About the Social Housing Decarbonisation Fund

Will my rent increase after SHDF improvements are made to my home?

Your landlord should not increase your rent specifically because of SHDF improvements. The work is paid for by government grant and your landlord’s own money, not by tenants, and scheme rules say your energy bills must not rise as a result. Social housing rents are regulated by the Regulator of Social Housing and can only increase by a set percentage each year, regardless of improvements made. However, your service charges may change if new communal systems are installed that have ongoing maintenance costs. Any such changes must be communicated in advance.

Can I refuse SHDF improvements to my home?

In most cases, yes, although your landlord may have rights of access under your tenancy agreement for essential maintenance and improvement works. Before refusing, consider the benefits: the work is free, it should reduce your energy bills, improve your home’s comfort, and may reduce damp and mould problems. If you have specific concerns about disruption or particular measures, discuss them with your landlord’s retrofit team. They may be able to accommodate your concerns.

What if the SHDF work causes damage or problems in my home?

Report any problems immediately to the resident liaison officer or your landlord. Work under the fund has to follow the PAS 2035 retrofit standard, be done by TrustMark-registered installers, and have a measure guarantee in place before it starts. If the work causes damp, mould, draughts or other issues, the contractor should return and put it right at no cost to you. If they don’t, your landlord remains responsible for sorting it out, including by claiming on the guarantee. If damp or mould appears, Awaab’s Law gives council and housing association landlords in England set time limits to investigate and make the home safe, and our free damp and mould letter tool helps you report it in writing. If you’re still unhappy, use your landlord’s complaints procedure and then the Housing Ombudsman.

How long does an SHDF retrofit take per property?

The duration depends on the scope of work. A straightforward loft insulation top-up may take only one day. External wall insulation typically takes two to four weeks. A comprehensive whole-house retrofit involving insulation, heating replacement, ventilation and glazing upgrades can take four to eight weeks. Your landlord should provide a clear timeline before work begins and keep you updated on progress.

I am a housing association tenant. Does the SHDF cover my home?

Yes, if you’re in England. The fund covers both council homes and housing association (registered provider) homes, but your landlord has to bid for it, and in Greater Manchester and the West Midlands the money comes through the combined authority instead. Wave 3 applications closed in November 2024, so if your housing association isn’t in a Wave 3 project, ask how it plans to meet the requirement for social homes to reach EPC C by 1 April 2030. Many housing associations fund retrofit programmes through a mix of government grants, internal reserves and borrowing.