LCSF may be gone, but opportunities remain – here’s what you can do next

The government has confirmed there will be no new Low Carbon Skills Fund (LCSF) allocation for 2025–2026.

While this may come as disappointing news to many who have been preparing bids in the public sector, it’s important to remember: this is not the end of the road for your carbon reduction plans.

The fund has consistently been hugely oversubscribed, often closing within minutes. The final round saw tens of millions in bids – sometimes little more than placeholders – due to its first-come-first-served nature.

What’s happening?

LCSF will not return in FY 2025–26, ending a funding route that supported feasibility studies and heat decarbonisation plans.

What this means for you

Don’t let this development pause your progress. At Zenergi, we’ve always approached funding proactively – and we’re here to guide you through what’s next.

Here's how to stay on track

Refocus on Public Sector Decarbonisation Scheme (PSDS)

PSDS is confirmed for 2025–26. While it requires match funding, it’s consistently undersubscribed – meaning there’s real opportunity here for well-prepared bids.

Start preparing now

Even without LCSF, we recommend continuing to build robust business cases and heat decarbonisation plans. A well-prepared bid puts you ahead when new schemes arise.

Explore alternative grant funding

While national funds are limited, local authorities, LEPs, and other bodies may offer project-specific or sector-specific support. We can help identify these.

Leverage compliance services

Use this time to ensure your estate is audit-ready and compliant – from energy audits to carbon reporting, our team can fill the skills gap left by LCSF.

Upskill your team with Energy and Carbon Management Training

Our specialist training can help you and your team understand your energy use, set effective carbon reduction strategies and develop internal expertise to optimise your estate.

While one funding route has closed, the momentum for climate action hasn’t. This is the perfect time to refocus, strengthen your internal capability, and get ahead of future funding. With the right preparation and support, your net zero plans don’t need to slow down."

Harry Eaves

Senior Energy Consultant

Zenergi

We can help

We’ve supported clients through every round of LCSF and PSDS, navigating complexity, tight deadlines, and shifting criteria. We’re ready to be your sustainability partner, whether it’s: