The Warm Homes: Social Housing Fund (WH:SHF) is the primary government funding mechanism for energy efficiency improvements in social housing. It is the successor to the Social Housing Decarbonisation Fund (SHDF) and sits at the centre of the government's Warm Homes Plan, which commits £15 billion to home energy upgrades through to 2030.
For housing associations, WH:SHF represents the most significant source of capital funding available for stock decarbonisation. Understanding how the scheme works, what it requires and how to access it effectively is essential for any organisation with a large housing stock to improve.
WH:SHF is open to social housing providers — housing associations, local authority housing departments and other registered providers of social housing. Mixed-tenure developments are eligible where social housing properties constitute the majority. Private rented and owner-occupied properties are not eligible under this stream — they are covered by the Warm Homes: Local Grant.
WH:SHF funds capital works to improve the energy efficiency and decarbonise the heating of social housing stock. Eligible measures include insulation (wall, roof, floor and draught proofing), heat pumps (air source and ground source), solar PV, battery storage, smart heating controls and associated enabling works.
The scheme targets the worst-performing properties first. Properties rated EPC Band E, F or G are the priority, with Band D properties also eligible. Properties already at Band C or above are generally not eligible.
Wave 3 (2025–2028) introduced a standardised base cost cap of £7,500 of grant funding per home, which can be averaged across all homes in an application. An additional £7,500 uplift is available for off-gas-grid properties where low-carbon heating is installed. Admin and ancillary costs are capped at 15% of total project spend.
Important: The 15% admin and ancillary cap includes survey costs, project management, resident engagement and coordination fees. Understanding what falls within this cap — and what counts as capital expenditure — is essential for accurate programme costing.
All WH:SHF works must comply with PAS2035. This means an accredited Retrofit Coordinator must be appointed before assessment begins, all four stages of the PAS2035 process must be completed, all installers must hold PAS2030 certification for the measures they install, and all projects must be lodged with TrustMark on completion.
PAS2035 compliance is verified through TrustMark — funding payments cannot be claimed for projects that have not been successfully lodged. Organisations should ensure that their RC and supply chain have the capacity and capability to meet lodgement requirements before committing to programme timelines.
Competitive WH:SHF applications demonstrate a clear evidence base for the need for investment, a realistic and costed delivery plan, confirmed supply chain capacity, a PAS2035-compliant coordination structure and a credible resident engagement strategy. Applications that cannot demonstrate RC capacity or PAS2030-certified installers are at a significant disadvantage in competitive rounds.
The strongest applications are typically submitted by organisations that have already been through at least one previous SHDF or WH:SHF funding round, have an established supply chain and can demonstrate lessons learned from previous delivery. First-time applicants benefit significantly from partnering with experienced RCs or programme managers who can provide both the coordination capability and the application evidence base.
Our accredited team works with housing associations, local authorities and installers across the UK.
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