policy and funding
Salix reports 25,000 social housing measures and 560 public sector projects in 2025-26
The government-backed delivery body's annual report records a year of Social Housing Decarbonisation Fund, Public Sector Decarbonisation Scheme and Home Upgrade Grant work ahead of its planned merger into a new Warm Homes Agency.
Salix Finance has published its annual report and accounts for 2025-26, recording more than 25,000 Social Housing Decarbonisation Fund measures installed and 560 Public Sector Decarbonisation Scheme projects supported during the year.
The report, published on 13 October 2026, covers Salix's housing and public sector programmes in England, Scotland and Wales. Salix's funding supports councils, schools, housing associations, hospitals and universities, according to the organisation.
Across the year, Salix said more than 21,064 measures were installed through Social Housing Decarbonisation Fund (SHDF) Wave 2.1 and 4,035 through Wave 2.2. The 560 Public Sector Decarbonisation Scheme (PSDS) projects it supported in delivery or completion are forecast to save more than 474,000 tonnes of carbon a year, the organisation said.
Kevin Holland, Salix chief executive, said: "Our success is driven by ambition, disciplined planning, strong governance and our adaptability."
Home Upgrade Grant closes
The Home Upgrade Grant Phase 2 (HUG2) scheme closed during the year, with upgrades forecast to save households £3m a year in combined energy bills, according to the 2025-26 report.
In January 2026 Salix said 11,900 homes had been upgraded with 22,000 measures through 45 local authorities under the scheme. HUG2, delivered on behalf of the Department for Energy Security and Net Zero (DESNZ), targeted households in England that were low-income, off the gas grid or rated EPC D to G.
Paul Hill, director for housing at Salix, said at the time: "We hope by next winter that thousands more will be experiencing the same benefits we're seeing and hearing about today."
The SHDF figures in context
Salix's in-year SHDF figures compare with the more than 35,000 energy efficiency measures it reported delivering through the same two waves in 2024-25. Salix noted that its Wave 2 delivery numbers are subject to change in line with official statistics published on GOV.UK, which run two months in arrears.
Those official statistics, published by DESNZ, give the cumulative picture. To the end of July 2026, around 160,100 measures had been installed in 73,600 households across all SHDF waves.
| SHDF wave (cumulative to end July 2026) | Measures | Households |
|---|---|---|
| Wave 2.1 | 117,100 | 52,600 |
| Wave 2.2 | 11,300 | 5,000 |
| All waves | 160,100 | 73,600 |
Wave 2.1 awarded around £778m of grant funding to 104 projects, while Wave 2.2 awarded around £80m from April 2024, according to DESNZ. Loft insulation is the most common single measure installed under Waves 1, 2.1 and 2.2.
Public sector programmes
On the public sector side, Salix's 2024-25 report said that by the end of that year it had awarded £3.7bn of PSDS grants in England for projects with a total value of over £4.6bn. Those grants were projected at the time to save over 550,000 tonnes of CO2e a year; the 474,000-tonne figure in the new report relates to the 560 projects supported in 2025-26, so the two are not directly comparable.
In Greater Manchester, Salix supported the Greater Manchester Combined Authority (GMCA) with delivery of its Public Buildings Retrofit Fund and said it will continue to work with GMCA through two further phases.
In Scotland, its work included further investment through the Public Sector Heat Decarbonisation Fund and the launch of a new solar energy efficiency loan scheme. In 2024-25 Salix supported more than 120 projects in Scotland with a total value of £21m. In Wales, it continued to support the Digarbon programme, which was launched to decarbonise the tertiary education sector for the Welsh Government.
Salix also secured two National Infrastructure and Service Transformation Authority (NISTA) green ratings in 2024-25, for PSDS and the Home Upgrade Grant.
What happens next
DESNZ published its Warm Homes Plan on 21 January 2026, which it said sets out how it will cut energy bills and upgrade homes; the document was updated on 18 March 2026 to correct information on three pages.
The plan includes establishing a Warm Homes Agency, formed by combining Salix with Ofgem's delivery and schemes arm and part of DESNZ's Net Zero Buildings and Industry team. According to Salix, the agency will support place-based decarbonisation by working with local authorities on local planning and delivery.
Holland said in January 2026 that Salix was "well placed to bring our skills and expertise into the new agency to make a real impact".
Salix said it will continue to deliver its existing programmes while supporting next steps for the plan. The new Warm Homes Agency is expected to go live before the end of 2027.
On the record: Department for Energy Security and Net Zero, Greater Manchester Combined Authority
Sources
- Salix Finance (opens in a new tab) (accessed 2026-10-13)
- Salix Finance (opens in a new tab) (accessed 2026-10-13)
- Salix Finance (opens in a new tab) (accessed 2026-10-13)
- Salix Finance (opens in a new tab) (accessed 2026-10-13)
- Salix Finance (opens in a new tab) (accessed 2026-10-13)
- Department for Energy Security and Net Zero (opens in a new tab) (accessed 2026-10-13)
- Department for Energy Security and Net Zero (opens in a new tab) (accessed 2026-10-13)
This story was researched from the primary sources above and checked against them before publication. Spotted an error? Tell us and we will correct it promptly.
