Section 31 FAQs for the Phase 1 Public Sector Decarbonisation Scheme

Public Sector Decarbonisation Scheme Phase 1: Section 31 Grants 

BEIS has given Salix Finance approval to allow Phase 1 Public Sector Decarbonisation Scheme (PSDS) projects that have been funded under Section 31 of the Local Government Act 2003 to have longer to complete.  

Some PSDS Phase 1 grants were made under Section 31 of the Local Government Act 2003 which provides Government with a general power to give grants to local authorities for any purpose. The definition of local authorities includes unitary, district and council councils, Combined Authorities and police and fire authorities.

Under Section 31 it means that if a project cannot be completed by 31 March 2022, Salix Finance can exercise discretion in approving practical completion dates up to, but no later than, 30 June 2022. 

The purpose of this discretionary extension for Section 31 grant recipients is to enable the completion of projects where grant recipients are already in receipt of funding but are not able to complete by 31 March 2022. 

Section 31 grant recipients that can complete projects by 31 March 2022 should still do so. This discretionary extension period is intended to allow flexibility for grant recipients that may have risks that challenge their ability to complete projects by 31 March 2022 and, give Section 31 grant recipients confidence that there is a mechanism for a short extension if required.

To request an extension beyond 31 March 2022, grant recipients will need to demonstrate to Salix Finance that:

  • The project has started – clients will need to have provided evidenced spend on the project to Salix Finance before we can grant an extension.
  • The extension must be necessary for a project to complete – clients will need to provide evidence to support this.
  • Clients have a credible plan to complete the project by 30 June 2022, or otherwise can demonstrate that any remaining funding which will still need to be spent to complete the project after that date will be provided from other sources.

The mechanism for formally agreeing any extension will be the existing Change Request process. Please see change request form here. To be successful, clients need to meet all three conditions as set out above.

The evidence will be reviewed by Salix Finance, and if approved, a further Grant Amendment Letter will be issued with a revised practical completion date.  
If clients think that Section 31 project may need an extension beyond 31 March 2022, then they should contact their relationship manager at the earliest opportunity to discuss why the project cannot complete by this date, the extension to be requested, and whether or not it might be possible in their particular circumstances to secure an extension beyond 31 March 2022.

Salix Finance will also be holding a webinar on Tuesday,1 February at 2pm to give clients an opportunity to ask questions around Section 31 grants. More information about the webinar will be posted here shortly.