Source · Select Committees · Public Accounts Committee
Recommendation 2
2
The Department is not fully funding the replacement of forms of dangerous cladding which are...
Conclusion
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.
Government Response
Not Addressed
HM Government
Not Addressed
2.1 The government agrees with the Committee’s recommendation. Ta rget implementation date: To be determined 2.2 The department has committed to bring forward proposals for ensuring that unsafe cladding is removed from high rise buildings as quickly as possible, backed by over £1.6 billion of government funding. We will continue to consider the most appropriate way to ensure funding is allocated in line with risk. 2.3 As the Secretary of State set out on 10 February 2020, the Building Safety Fund is focused on addressing the life safety risks arising from unsafe Aluminium Composite Material (ACM) cladding, similar to that used on Grenfell Tower, and other Higher Risk Materials (HRM). It will prioritise buildings taller than 18 metres in height. 2.4 The government has always been clear that building owners are responsible for ensuring the safety of their buildings and that it is for them to meet the costs of addressing safety defects. However, the department recognises that some building owners are struggling to fund remediation work. The £1 billion Building Safety Fund is designed to accelerate remediation of unsafe non-ACM cladding, where building owners are unable to pay. 2.5 The Building Safety Bill introduces a new Building Safety Charge to ensure that residents in high-rise buildings only pay their fair share for essential safety measures. In addition, the Bill will extend the period in which residents can claim compensation for substandard construction work from six to 15 years.