UK universities are set for a £500m retrofit boost under a new financing deal between Lloyds Banking Group and the National Wealth Fund.
The initiative will help universities upgrade ageing campus buildings, cut energy use and install low carbon heating across some of the most complex estates in the built environment.
Lloyds will provide up to £500m of lending to UK universities, backed by up to £350m of financial guarantees from the National Wealth Fund.
The guarantee is designed to help Lloyds offer longer-term and more flexible finance, making retrofit projects easier to fund and deliver.
The programme could modernise up to 300 university buildings used by students, staff and researchers.
It could also create or support up to 4,000 jobs across local supply chains, from contractors and engineers to specialist retrofit firms.
Universities face a major decarbonisation challenge because many estates include older buildings, laboratories, specialist facilities and energy-intensive sites.
The total cost of decarbonising the university built environment is estimated at £8.8bn.
Oliver Holbourn, CEO of the National Wealth Fund, said: “The UK’s universities are a significant national asset, acting as vital anchors for place-based growth by providing opportunity and driving innovation.”
He added the partnership will help bring university estates “up to spec” while supporting skilled retrofit jobs and local supply chains.
Amanda Murphy, CEO of Business & Commercial Banking at Lloyds Banking Group, said universities play “a vital role in driving growth and innovation across the UK” but face major challenges funding the upfront cost of decarbonisation.
She said: “Through our partnership with the National Wealth Fund, we’re unlocking targeted funding to help accelerate the decarbonisation of university estates, supporting investment and strengthening global competitiveness.”
The deal builds on an existing retrofit partnership between Lloyds and the National Wealth Fund focused on social housing.
Lloyds has already committed up to £500m of lending for social housing retrofit, supported by up to £400m of National Wealth Fund guarantees.
The latest university package takes Lloyds’ total retrofit commitment to £1bn, partially guaranteed by the National Wealth Fund.
The National Wealth Fund has now provided more than £1.6bn in guarantees to accelerate retrofit across the built environment.
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