The closure of the Public Sector Decarbonisation Scheme (PSDS) in June 2025 left many schools questioning how they would continue their net-zero ambitions. For years, PSDS provided vital capital for many projects, but the government has confirmed that no new funding rounds will be awarded beyond projects already in progress.
However, the end of PSDS does not mean the end of your decarbonisation journey. Understanding your post-PSDS finance options is crucial for maintaining momentum on sustainability goals whilst managing rising energy costs.
Our guide explores the PSDS alternative funding routes available to schools, academies and multi-academy trusts across the UK.
What was the Public Sector Decarbonisation Scheme?
PSDS was a government initiative launched in 2020 that supported public sector organisations, including schools, to reduce carbon emissions through energy efficiency improvements. The scheme allocated over £3.8 billion across five years, funding projects such as air source heat pumps, solar panel installations, improved insulation and heating system upgrades.
Schools and academies received tens of millions of pounds through PSDS, with individual grants reaching up to £5 million for larger trusts. The scheme aimed to cut emissions from public sector buildings by 75 per cent by 2037, using 2017 levels as the baseline.
Following the government’s spending review, PSDS closed to new applications in June 2025. While Phase 4 projects will continue until March 2028, no further funding rounds are planned. This leaves many schools with 2030 net-zero targets facing significant challenges in meeting their sustainability commitments.
What funding is available after PSDS?
Condition Improvement Fund
The Condition Improvement Fund (CIF) is an annual scheme from the Department for Education supporting maintenance and improvement projects in schools. CIF can fund energy efficiency improvements that also address building condition issues, such as boiler replacements, window upgrades or roof repairs with improved insulation. Eligible institutions include stand-alone academies, schools in multi-academy trusts with fewer than five schools or less than 3,000 pupils, and sixth-form colleges.
School Condition Allocation
School Condition Allocation (SCA) provides funding directly to larger multi-academy trusts, local authority-maintained schools and voluntary-aided schools to address priority maintenance needs. Unlike CIF, SCA funding is allocated rather than applied for, and can be used for energy efficiency improvements such as upgrading heating systems, improving ventilation or replacing inefficient windows.
Urgent Capital Support
Urgent Capital Support (UCS) provides emergency funding for academies and sixth-form colleges facing critical building condition issues. While primarily focused on urgent safety matters, UCS can cover failing heating systems or boilers that pose immediate risks, and remains accessible year-round.
School-based Nursery Capital Grant
Schools operating nurseries may be eligible for the School-based Nursery Capital Grant, which supports the creation or expansion of nursery places. While the primary focus is on increasing capacity, projects can incorporate energy-efficient design and sustainable building practices, allowing you to improve your overall estate sustainability whilst meeting childcare needs.
Local authority support
Many local authorities offer their own funding streams for energy efficiency projects in maintained schools. These schemes vary by region but may include interest-free loans, grants for specific technologies or match-funding arrangements, and we recommend contacting your local authority to discuss available options.
How can I maximise my funding opportunities after PSDS?
Success with funding post-PSDS requires strategic planning. Start by conducting a comprehensive energy efficiency survey to identify priority improvements and their potential costs. This assessment provides the evidence base for funding applications and helps you target the most appropriate schemes.
Consider combining multiple funding sources to complete larger projects. Our funding specialists can help you develop a strategic approach that maximises available capital across different schemes.
Ensure your applications are comprehensive, well-evidenced and aligned with funding priorities. Poor-quality applications are a common reason for rejection, so working with experienced professionals can significantly improve your success rate.
We understand how to position decarbonisation projects within the context of building condition priorities, which is essential for CIF and SCA applications.
How can Eddisons Education help with PSDS alternative funding?
Whether you need help identifying suitable funding routes, preparing compelling applications or managing your energy efficiency projects, we are here to support you. Our RICS-certified surveyors can assess your buildings to identify priorities, while our funding team has a proven track record of securing government grants.
With 180 years of experience and positive client reviews, you can depend on us to guide you through the post-PSDS funding landscape. Our building consultancy team can then manage your projects from start to finish, ensuring minimal disruption to your school whilst delivering measurable carbon and cost savings.
Start exploring your funding options after PSDS today
The closure of PSDS does not mean the end of your decarbonisation ambitions. Multiple schemes exist to support your energy efficiency goals, and we can help you navigate them successfully while positioning your projects to meet both sustainability and building condition priorities.
Please call 0808 175 9289 or complete the form below to arrange a free consultation and discuss which funding options are right for your school.
