Organisations such as NHS Trusts, schools and local authorities will be able to apply for grants from next month to install low carbon heating, such as heat pumps, and energy efficiency measures including double glazing and loft insulation.

Upgrades are already under way through earlier rounds of the scheme, with 734 grants awarded to public sector organisations across England so far and Phase 1 alone supporting up to 30,000 jobs in the clean heating and energy efficiency sectors.

Business and Energy Minister Lord Callanan said: “We are already delivering upgrades to hundreds of public buildings across England, making them cheaper to run and saving taxpayers millions of pounds each year.

“By helping even more public sector bodies ditch costly fossil fuels, we are taking an important step towards a more sustainable future while driving economic growth across the country and continuing to support tens of thousands of jobs.”

The Public Sector Decarbonisation Scheme supports the aim of reducing emissions from public sector buildings by 75%, compared to 2017 levels, by 2037.

This £635m funding round is the second part of an overall £1.425bn due to be allocated between 2022 and 2025.

Projects that have already received funding include Nottingham University Hospitals NHS Trust, which received more than £70m to install water source heat pumps at Queens Medical Centre.

Birmingham Women’s and Children’s NHS Foundation Trust was awarded more than £50m to install clean heating and energy efficiency measures in their hospitals and the Royal Botanic Gardens, Kew was awarded over £4.4m to decarbonise the Grade II listed Nash Conservatory and Jodrell Laboratory.