The Combined Authority obtained grant funding from the Department of Energy Security and Net Zero (DESNZ) to deliver SHDF Wave 2.1. Delivery commenced in 2023 and will conclude March 2025. The Combined Authority has led a consortium of 14 Registered Providers of Social Housing to deliver energy improvements to social homes in the City Region. This follows delivery of SHDF Wave 1 by the Combined Authority.

Funding is targeted at social homes with an Energy Performance Certificate (EPC) of band D-G with the aims of improving their energy performance to EPC band C, reducing reliance on fossil fuel heating, and easing fuel costs for tenants.