PUBLIC SECTOR DECARBONISATION SCHEME
DESNZ · BEIS_0013_2021-Q4 · Earlier name: Public Sector Decarbonisation Scheme (PSDS) (March 2024)
Department page: Department for Energy Security and Net Zero
| Data as at | Rating | End date | Whole-life cost |
|---|---|---|---|
| March 2024 | Amber (NISTA's independent assessment) | 31 March 2025 | £2,565m (price basis not stated) |
| March 2025 | Amber (the department's own assessment) | 31 March 2028 | £3,836.29m (price basis not stated) |
| March 2026 | Amber (the department's own assessment) | 31 March 2028 | £3,759m (in 2024/25 prices) |
Each year’s cost is shown with its price basis. Costs are not compared between years: the March 2024 and March 2025 reports state no price basis, and from March 2026 costs are in 2024/25 prices.
The department’s commentary
This is the department’s own commentary. It may use different prices from the table above, so its figures may not match.
March 2026
Rating: Overall delivery of live projects is progressing well. Although grant recipients continue to experience pressures from, for example, higher-than-expected costs and longer than anticipated timelines for delivery, projects are delivering at above our previously assumed level. As a result, delivery outcomes are looking promising. Compared to financial year 24/25 Q4, the NISTA/SRO Delivery Confidence Assessment rating at 25/26 Q4 remained at AMBER.
Schedule: The project is due to conclude on 31 March 2028, in line with the latest approved Business Case. In 2025, Ministers took the decision not to support further investment in PSDS, and no additional funding will be allocated.
Cost: In June 2025, the PSDS budget was reduced as part of Phase 2 of the 2025 Spending Review, with impacts on funding in FY 2026/27 and 2027/28.
March 2025
Rating: Compared to financial year 23/24-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 remained at AMBER. This is primarily due to the following factors: while overall delivery of live projects is progressing well, grant recipients continue to experience pressures from, for instance, higher-than-expected costs and longer than anticipated timelines for delivery implementation. As a result, the outcomes regarding technologies deployed remain uncertain.
Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 increased from 31/03/2025 to 31/03/2028. This is primarily due to the following factors: the Phase 4 Full Business Case, covering delivery through to FY 2027/28, was approved and at Autumn Budget 2024 additional funding was secured for financial years 2025/26 to 2027/28. Phase 4 of the scheme was launched in Autumn 2024 with grant recipients able to commence grant spend from 1 April 2025.
Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) increased from 2565 to 3836. This is primarily due to the following factors: funding for the second year of Phase 3c, and Phase 4, of the Public Sector Decarbonisation Scheme was secured and included in the return. This funding will support delivery across financial years 2025/26 to 2027/28.
Source: NISTA Annual Report 2024-25 (data)
March 2024
Rating: Compared to financial year 22/23-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 23/24-Q4 remained at Amber. This is primarily due to the following factors. Although the key milestones for year 1 and 2 of PSDS Phase 3 have been successfully delivered, the outcome in terms of spend and technology deployed remains uncertain. We know that projects are experiencing headwinds from higher than expected costs due to inflation.
Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 remained schedule to finish on 2025-03-31. This is primarily due to the following factors. The project is due to conclude on 31/03/2025 in line with our latest approved business case. The project end date will shift by a year (to March 2026) when we receive approval via the business case process for the next Phase of the scheme.
Cost: Compared to financial year 22/23-Q4, the project's departmental-agree Whole Life Cost at 23/24-Q4 decreased from 2598m. to 2565m. This is primarily due to the following factors. The Whole Life Costs decreased due to readjustment of baseline following PSDS budget reductions and departmental budget transfers.
Source: IPA Annual Report 2023-24 (data)
Names, figures, dates, ratings and commentary are as the department reported them. Where a rating, cost or date is withheld, the file’s wording is shown. Every major project →