LCSF was never designed to pay for retrofits themselves. Instead, it funded the critical preparatory work: technical surveys, energy modelling, building-fabric assessments, and decarbonisation roadmaps. Without this groundwork, applying for larger-scale funding (such as PSDS) became extremely difficult.
By removing LCSF at the same time PSDS has ceased accepting new projects, the government has effectively eliminated the two major, complementary pieces of the public-sector decarbonisation process:
- Planning support (LCSF)
- Capital funding for delivery (PSDS)
The result? Schools and public-sector bodies now face a much more challenging task in developing and financing long-term energy-upgrade strategies.
What Replaces LCSF — and What Doesn’t
- Local Net Zero Hubs
DESNZ has pointed to regional Local Net Zero Hubs as the primary replacement for LCSF support. These hubs can provide free advice and strategic guidance — a valuable resource, especially for organisations with limited internal expertise.
However, this model differs significantly from LCSF:
- It is advisory, not a grant.
- Support capacity varies by region.
- It does not pay for consultants, specialists or detailed feasibility studies.
- It does not fund the preparation of PSDS-ready or procurement-ready plans.
- Accelerated progress toward net zero commitments
In short: hubs help, but they do not replace the depth of support LCSF funded.
- Great British Energy (GBE)
The government’s new publicly owned clean-energy company, Great British Energy, has begun investing in renewable-energy initiatives, including solar installations on schools and hospitals.
This is a welcome step — but GBE’s focus is energy generation, not holistic estate-level retrofit planning or heating-system decarbonisation. Solar panels alone cannot solve the challenges of outdated boilers, poor insulation or draft-prone buildings.
- What’s missing
- There is currently:
- no national grant for decarbonisation planning
- no new PSDS capital funding, leaving estates without large-scale financial support
- no formal replacement for comprehensive feasibility and heat-decarbonisation planning
This is the core challenge the sector now faces.
How This Shift Affects Schools and Colleges
The educational estate makes up a substantial share of public-sector emissions — with many buildings constructed long before energy efficiency was a design consideration.
Without planning grants or capital funding:
- Fewer schools will be able to develop robust decarbonisation plans.
- Retrofit projects may be delayed or cancelled due to lack of feasibility work.
- Eligibility for future funding becomes harder, since most schemes require detailed, costed plans.
- Energy waste and operating costs may rise, especially as fuel prices remain unstable.
- Progress toward net-zero public-sector targets risks slowing significantly.
For a sector already facing tight budgets, these barriers are material.
What Schools and Public-Sector Bodies Should Do Now
Even without national grant programmes, organisations can still take proactive steps:
1. Conduct a baseline energy review
Gather data on energy consumption, heating systems, insulation, glazing and building condition. Even a high-level review is a strong start.
2. Engage with Local Net Zero Hubs
Make use of the free advisory support currently available — even if it cannot fund detailed consultancy work, it can help shape a strategy.
3. Identify low-cost, high-impact measures
LED upgrades, draught proofing, small insulation improvements and optimisation of existing controls can produce real savings.
4. Explore local and alternative funding routes
These might include: Local authority capital maintenance funds Condition Improvement Fund (CIF) for eligible institutions Community energy partnerships Power purchase agreements (PPAs) for solar Internal investment using payback-based energy savings
5. Build a phased long-term roadmap
Even without immediate funding, a staged plan helps decision-making, supports future bids and ensures readiness when opportunities re-emerge.
Looking Ahead — A Critical Time for Net Zero in Education
With both LCSF and PSDS now closed, the landscape for school decarbonisation has changed dramatically. The shift toward GBE and localised advisory structures signals a new direction in national strategy — but it leaves a significant short-term funding vacuum for heating and building-fabric upgrades.
For schools and colleges with aging estates, the need for clear planning, evidence-based decisions and alternative funding approaches has never been greater. Progress remains possible, but the path has undeniably become more challenging.
The sector will be watching closely for any action — especially in future Spending Reviews — that addresses the growing gap in support for public-sector decarbonisation.
