Guide to PSDS Funding

Complete Guide to PSDS Funding

Fit-out contractors Willmott Dixon Interiors have put together a definitive guide to PSDS funding: what it covers, who exactly is eligible, and how you can apply.

What is the Public Sector Decarbonisation Scheme?

The Public Sector Decarbonisation Scheme (PSDS) is a UK government initiative designed to help public sector organisations reduce carbon emissions and improve energy efficiency. The scheme provides grant funding for energy-saving and low-carbon projects in public buildings, supporting the aim of reducing emissions from public sector buildings by 75% by 2037.

Administered by Salix Finance, PSDS funding is available to organisations such as schools, hospitals, local authorities, emergency services, and government buildings. The funding covers a wide range of energy efficiency improvements, helping public sector bodies reduce their environmental impact while cutting energy costs.

PSDS Phase 4: September 2024

The PSDS Stage 4 is the latest phase of a grant program, enabling public sector buildings to reduce their emissions by switching to cleaner methods of heating. Phase 4 of the grant is more targeted, focusing on projects that reduce emissions and provide the best value for money. Successful applicants must contribute at least 12% of the total project cost, will receive funding by the end of May 2025, and their projects must be delivered by 31 March 2028.

What does PSDS Funding cover?

PSDS funding is designed to support projects that replace fossil fuel-dependent systems with low-carbon alternatives. Eligible upgrades typically include:

  • Heating system upgrades: Replacing gas boilers with air-source or ground-source heat pumps
  • Building insulation: Enhancing walls, roofs, and windows to improve energy efficiency
  • Renewable energy installations: Installing solar panels, battery storage, or wind turbines
  • LED lighting upgrades: Replacing outdated lighting with energy-efficient alternatives
  • Ventilation and cooling improvements: Implementing mechanical ventilation with heat recovery (MVHR)
  • Smart Energy Management Systems: Integrating building controls to optimise energy use

Who is Eligible for PSDS Funding?

PSDS funding is available to public sector organisations in England, Scotland, and Wales. This includes:

  • Local authorities and councils
  • Hospitals and NHS Trusts
  • Schools, colleges, and universities
  • Emergency services (police, fire, and ambulance)
  • Government departments and agencies
  • Leisure centres and cultural buildings

Private companies and residential properties are not eligible for PSDS funding.

PSDS Funding: Application & Process

Applying for PSDS funding involves several key steps:

1. Check your eligibility

Ensure your organisation qualifies under the scheme’s criteria.

2. Identify energy efficiency measures

Conduct an energy audit to determine which upgrades are necessary.

3. Prepare a business case

Provide evidence of potential carbon and cost savings.

4. Submit an application to Salix Finance

Applications are assessed on carbon reduction potential, cost-effectiveness, and deliverability.

5. Receive funding and implement upgrades

If successful, projects must be completed within the given timeframe.

Avoiding Common Mistakes During Application

One of the most common mistakes an organisation will make when applying for decarbonisation grants is misunderstanding what the PSDS will fund. The scheme will only cover the extra costs of switching to low-carbon technologies; it does not pay for the standard system replacements. The funding will also not cover a system that still features fossil fuels, such as backup boilers fired by gas.

Willmott Dixon Interiors: Fit Out & Refurbishment

Willmott Dixon Interiors specialises in fit-out and refurbishment projects that help public sector organisations achieve their decarbonisation goals. With extensive experience in sustainable building solutions, we deliver energy-efficient upgrades aligned with PSDS funding.

If your organisation has secured PSDS funding in Phase 4 and is undertaking a decarbonisation project, we’re here to help. Contact us today to discuss your requirements and find out how we can support your journey towards sustainable, energy-efficient buildings.

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Joe Gallagher

With 19 years of experience and over 500,000 square ft of CAT B office fit-outs delivered in London’s most prestigious locations, Joe Gallagher is our CAT B fit-out project lead. His portfolio reflects over £110 million worth of commercial office fit-outs for customers ranging from banks, media brands, and tech companies to developers and management consultants.

Why we do it

By keeping buildings alive, we preserve their history while ensuring they remain relevant, sustainable, and functional in a changing world. Our work is about more than just refurbishment—it’s about creating spaces that inspire, support communities, and provide lasting value.

Let’s work together to transform spaces, ensuring they stand the test of time while meeting the needs of today and the future.

How we do it

A heritage of trust and reliability: With over 172 years of success, Willmott Dixon Interiors is part of one of the UK’s most established construction companies. Our long-standing reputation means you can trust us to deliver with the highest standards of quality, and that you are partnering with a company that is secure and dependable, especially in an industry where financial stability is crucial for project success.

Transparent and reliable project management: We prioritise on-time and within-budget delivery. Our clear communication and proactive approach ensure that you stay informed throughout the project, giving you peace of mind from start to finish.

End-to-end project management: From feasibility studies to design and delivery, our expertise ensures projects run smoothly, on time, and within budget.

Expert procurement support: We simplify the tender process and guide customers through procurement frameworks, ensuring compliance and efficiency.

Sustainability-focused solutions: With a dedicated in-house team, we align every project with our ambitious sustainability goals, minimising waste and integrating energy-efficient solutions.

 

What we do

We specialise in the fit-out and refurbishment of buildings across multiple sectors, from offices and healthcare facilities to hotels, retail, and secure environments. Whether it’s breathing new life into a heritage building, modernising commercial spaces, or ensuring critical environments remain fully operational during works, we are committed to delivering projects with precision and care.

Key areas of focus:

A trusted team and supply chain: Our people are what make us stand out. From project managers to site teams, we bring a wealth of experience and a proactive approach to every project. We also support our supply chain partners with a 28-day payment term and a commitment to fair treatment, ensuring high-quality materials and timely execution.

Seamless design and build delivery: If required, our integrated design and build services streamline the process from RIBA Stage 2 or 3 to completion, saving you time and effort.

Live environment expertise: We excel in delivering projects in occupied and secure environments with minimal disruption, ensuring business continuity and safety.

Long-Term partnerships: We believe in building relationships based on trust, performance, and transparent communication, ensuring every project we deliver contributes to your ongoing success. Many of our customers return to us time and time again, a testament to our commitment to quality and service.

Attention to detail: From appointment to final handover, we focus on creating environments that not only meet but exceed expectations. Our rigorous quality assurance processes ensure every element of a project is delivered with precision.

Sustainable refurbishments: We pledge to be net-zero operational carbon by 2030 and have a net-zero supply chain by 2040. Our projects focus on energy efficiency, waste reduction, and the use of sustainable materials.

TRUSTED TEAM AND SUPPLY CHAIN

We are supported by a trusted supply chain, guaranteeing the use of high-quality materials, and ensuring timely project execution. Our long-standing relationships allow us to deliver excellence on every project.

ATTENTION TO DETAIL

From our appointment to the final handover, we focus on creating office environments that not only meet but exceed your expectations. Our attention to detail ensures that your space is functional, beautiful, and aligned with your business goals.

SUSTAINABILITY

Our dedicated in-house team ensures that every project aligns with our ambitious sustainability goals. As a business, we are committed to achieving a net-zero status by 2030, and we hold ourselves accountable at every stage of our operations. From minimising waste through innovative recycling programs to selecting sustainable materials and incorporating energy-efficient practices, we focus on reducing environmental impact.

COMMITMENT TO LONG-TERM PARTNERSHIPS

We believe in building relationships based on trust, performance, and transparent communication. Our goal is to create long term partners, ensuring that every project we deliver contributes to your ongoing success.

SEAMLESS DESIGN AND BUILD DELIVERY

If required our integrated design and build services can streamline the process from RIBA Stage 2 or 3 to completion, saving you time and effort. With in-house design capabilities and relationships with external design partners across all disciplines it gives us full flexibility to develop a tailored approach for each project.

PROVEN EXPERTISE

With extensive experience in the commercial fit-out market, we understand how to deliver projects that meet your unique needs. Our team has completed a wide range of traditional and design & build, high-quality fit-outs across multiple sectors.

TRANSPARENT AND RELIABLE PROJECT MANAGEMENT

We prioritise on-time and within-budget delivery. Our clear communication and proactive approach ensure that you stay informed throughout the project, giving you peace of mind from start to finish.

A HERITAGE OF TRUST AND RELIABILITY

Backed by over 172 years of success, Willmott Dixon Interiors is part of one of the UK’s most established construction companies. Our long-standing reputation means you can trust us to deliver with the highest standards of quality, and that you are partnering with a company that is secure and dependable, especially in an industry where financial stability is crucial for project success.

Learning and Development

We believe continued learning and development is crucial to our team’s everyday needs. Our internal L&D system, Willmott Dixon University, supports a wide range of courses for all of our people to ensure they are best-equipped to perform well in their job roles.

We are able to offer unlimited opportunities to those with the ambition to take their career to the next level and work in a stimulating environment. By offering 4 levels of management development programmes, we are able to provide the skills you need to help reach your potential.

Professional Qualifications

We believe that our teams should continue to have ongoing development both in and out of construction and are committed to assisting them in becoming qualified within a professional qualification of their choice.

Management Development

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Technical Apprentice Programme

Apprenticeships are a great route into construction. At Willmott Dixon, apprenticeships are available in our business support teams and also through our supply chain partners or our sister company, Fortem, in trade disciplines such as bricklaying.

We offer some entry level positions for those who are looking to take their first steps into construction. With a paid apprenticeship you will earn while you learn and obtain a Level 3 qualification. You can apply following GCSEs; you don’t to have a construction background to complete an apprenticeship.

Work Experience

We are supported by a trusted supply chain, guaranteeing the use of high-quality materials, and ensuring timely project execution. Our long-standing relationships allow us to deliver excellence on every project.

Loyalty Rewards

After five years with us, you’ll join our 5-9 Year Club and celebrate annually with the other members. After reaching 10 years, you will join the prestigious Willmott Dixon 10 Year Club and celebrate along with Rick Willmott.

Private Health Care

We value your health care and wellbeing and that is why we offer free or discounted private health care that will avoid you NHS long waiting lists.

Salary and Profit Share

At Willmott Dixon Interiors we are proud of our people and sincerely believe that our success depends on them and their skills. We reflect our gratitude in the highly competitive salary we offer and review every year. In addition, we will thank you for your hard work with the percentage of our annual profit (subject to certain criteria) to the scope of reflecting our ‘one team’ nature.

Flexible Working & More

The best is yet to come! We give you a day off for your birthday (without using your holiday entitlement), early leave every Friday, dress down Friday once a month, Summer and Christmas events, and more. We have ambitions to be an employer of choice for those who either want to or need to work in a flexible and agile way. Experience it all when joining our team, we are looking forward to getting to know you.

Pension and Life Assurance

We strongly value your future and want to help you save for it, that is why we will contribute by 6% of your pension and you will be protected by Willmott Dixon Interiors Life Assurance Scheme (more details to come when joining).

Holidays

We commit everyday to promoting a healthy work/life balance that matches a competitive holiday allowance, the longer you stay the more you get. 

If the holidays allowance isn’t enough, you can take advantage of buying extra holiday entitlement each year.