Recommendation 2

The Department is not fully funding the replacement of forms of dangerous cladding which are different from that used on Grenfell Tower, nor is it prioritising spending according to greatest risks or need. While the Department has established a new Building Safety Fund to finance the replacement of other forms of unsafe cladding, it has not provided a clear rationale for the size of this fund. The £1 billion fund will meet only around one-third of the estimated £3-£3.5 billion costs. The Department says it will distribute its funding on a ‘first come, first served’ basis, but could not say how it would sort applications in rank order, nor could it guarantee that funding would be prioritised according to financial need. Those buildings where the risks are greatest may well be excluded. In its previous fund to replace Grenfell-style cladding, the Department had insisted that stringent financial checks were needed to protect public money, but this seems incompatible with its intention to commit the much larger £1 billion Building Safety Fund in full by the end of the 2020–21 financial year. Recommendation: The Department should, within three months: a) publish its impact assessment of the safety risks and financial impacts on private leaseholders and social landlords (including knock-on impacts on house building and maintenance of existing stock) arising from only funding a fraction of the estimated costs of replacing non-ACM cladding from high-rise blocks; and b) write to us, outlining its assessment of the risks to public money of 6 Progress in remediating dangerous cladding committing all £1 billion of the Building Safety Fund by the end of March 2021, and how it will monitor and mitigate these risks.