Decarbonisation and Retrofit framework

Scotland has a legally binding net zero target of 2045, set five years ahead of the 2050 UK target under the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019. Interim targets are more stringent too, with a 75% reduction in emissions required by 2030. For social housing organisations, this means the pace of decarbonisation expected in Scotland is faster than in England, and the Heat in Buildings Strategy signals restrictions on new gas boiler installations in existing homes from 2025. Planning retrofit programmes now rather than waiting for regulatory deadlines gives organisations more time to manage the supply chain challenges that large-scale heat pump and insulation programmes tend to create, and it makes funding applications more competitive. 

The primary funding route for Scottish social landlords is the Warmer Homes Scotland programme, alongside any Social Housing Net Zero Heat Fund rounds the Scottish Government makes available. UK Government schemes such as ECO4 and the Social Housing Decarbonisation Fund (rebranded as Warm Homes: Social Housing Fund in England) may have some applicability for Scottish landlords in certain circumstances. The framework includes a dedicated Funding lot with appointed suppliers able to advise on and support applications to available funding streams, and the Full-Service Solution lot includes funding application support as part of end-to-end programme delivery. PfH Scotland can help organisations understand which funding routes are relevant to their stock profile and programme plans. 

PAS 2035 is the British Standard for domestic retrofit, setting out the requirements for how whole-house energy efficiency improvements should be assessed, designed, installed, and evaluated. It applies across Great Britain including Scotland and is mandatory for any projects accessing government funding including ECO4 and the Warm Homes: Social Housing Fund. PAS 2035 requires a retrofit coordinator to oversee the process and ensures that measures are installed in the right sequence to avoid unintended consequences such as moisture problems from poor ventilation. All framework suppliers in the retrofit and installation lots are required to work to PAS 2030 and PAS 2035 standards, which means members using the framework for funded programmes don’t need to verify compliance separately for each supplier. 

Scotland’s Heat in Buildings Strategy sets out the Scottish Government’s ambition to phase out gas boilers in existing homes, with restrictions on new gas boiler installations in existing properties expected from 2025. For social landlords, this means heating replacement programmes need to be planned around low-carbon alternatives rather than like-for-like gas boiler replacements. Air source heat pumps are the most widely applicable alternative for Scottish urban and peri-urban stock, while ground source heat pumps and heat networks may be more appropriate for rural or higher-density properties. The framework’s on-gas and off-gas servicing lots, heating installation lot, and renewable installations lot provide procurement routes for the full range of replacement options, and the consultancy lot covers feasibility studies to identify the right technology for different property types within your stock. 

They’re typically more expensive to retrofit, present more complex technical challenges, and may require bespoke solutions rather than standard package approaches. The framework includes ground source heat pumps and land and environmental survey lots that are particularly relevant for off-gas rural stock, and the consultancy lot covers the feasibility and modelling work needed to identify viable options for these properties. The whole-property retrofit lot and full-service solution lot are also designed to handle properties that need comprehensive improvement programmes rather than single-measure interventions. 

The framework is a pre-tendered agreement with ranked suppliers covering a defined range of lots, giving members a clear and quick route to directly award to or mini-compete among vetted suppliers. The Asset Decarbonisation and Retrofit DPS operates differently, with new suppliers able to join at any time, making it more flexible and better suited for organisations that want access to a broader or more locally focused supply pool, or where the specific works don’t fit neatly within the framework’s lot structure. For most standard decarbonisation and retrofit procurement, the framework offers the most straightforward route to contract. PfH Scotland can help you determine which vehicle suits your specific programme requirements. 

Retrofit and decarbonisation works carry a higher consequence of poor quality than most other housing maintenance activities. A badly designed or poorly installed heat pump system can underperform significantly, fail to meet the energy savings modelled, create condensation or moisture issues in the fabric, and leave residents with higher bills than before the works. A mis-sequenced retrofit programme can make future works more difficult and expensive. The 70% quality weighting reflects that technical competence, social impact commitment, health and safety performance, and ability to mobilise and deliver at scale matter more than achieving the lowest unit price. It also means the 48 appointed suppliers have all demonstrated a meaningful quality threshold rather than simply being the cheapest bidders in the market. 

PfH Scotland works with members from early programme planning through to contract management. For funded programmes, the team can help organisations structure their specification in a way that meets the reporting and quality assurance requirements attached to specific funding streams, whether that’s Warmer Homes Scotland, ECO4, or any other applicable fund. The framework’s Funding lot includes appointed suppliers with expertise in funding applications, and the Full-Service Solution lot provides an end-to-end route for organisations that want a single supplier to manage the funding application alongside the works delivery. Where organisations need more intensive support with procurement reform readiness, spend planning, or programme design, PfH Scotland’s consultancy services can provide that separately. 

The framework was designed to be accessible to both SMEs and larger national contractors. Pre-tender engagement included direct outreach to SMEs through the Supplier Development Programme, and the regional lot structure means that locally based contractors can compete credibly for regional work without being disadvantaged against national organisations. For Scottish members, this matters because local contractors often have better knowledge of Scottish building typologies, planning requirements under Scottish Building Standards, and the practical challenges of working in rural or remote locations. The six regional breakdowns covering North East, North West, Central East, Central West, South East, and South West Scotland give members supplier options that reflect local market conditions and travel logistics.