Will there be a PSDS Phase 5? No further PSDS funding confirmed

Will there be a PSDS Phase 5?

No. At the June 2025 Spending Review the government confirmed it will commit no further investment for the Public Sector Decarbonisation Scheme beyond currently-awarded projects [Salix]. No Phase 5 application window has been announced, and none is expected on current policy.

Oliver Wakefield-Smith

Founder · Digital Signet

Verified for Phase 4 / no further funding · refresh expected on any Salix or DESNZ policy change

What the government has said

The funding decision was taken at the June 2025 Spending Review: no additional PSDS funding beyond projects already awarded [Salix]. More than £3.5bn had been issued across nearly 1,400 PSDS grants, and awarded projects remain fully funded, but the scheme is not being extended with new capital.

Awarded projects are unaffected

Phase 3c grant funding continues to 31 March 2026 [Salix].
Phase 4 grant funding continues to 31 March 2028.
There is no open application window and no confirmed Phase 5.

Do not confuse this with the Low Carbon Skills Fund

Salix also runs the Low Carbon Skills Fund (LCSF), which reached a Phase 5 of its own. The LCSF funds heat decarbonisation planning advice, not the capital works PSDS paid for, and is a separate scheme. A PSDS Phase 5 (capital) and LCSF Phase 5 (skills) are not the same thing.

What schools should do instead

Because no further PSDS capital is coming, schools with a decarbonisation need should route to the live alternatives rather than wait: DfE Renewal & Retrofit (£710m), CIF for academies, and GB Energy schools solar. See the full post-PSDS routes comparison.

If policy changes

Should a future fiscal event revive public-sector decarbonisation capital, the signal points would be the Salix PSDS page [Salix] and the DESNZ PSDS collection [DESNZ]. On current policy there is nothing to await.