Select committee: Public Accounts Committee

Conclusion 30

17th Report - The Remediation of Dangerous Cladding Published 21 Mar 2025 Addressed to HM Treasury
Conclusion (the committee's words)
MHCLG told us that it was bringing forward statutory changes to ban insurance brokers from paying commissions to freeholders and managing agents, and capping what freeholders can charge leaseholders for arranging insurance.51 MHCLG told us that the risk–pooling arrangements it had brokered with the insurance industry to reduce rates had not yet had the impact it hoped on reducing the most extreme premiums. It recognised that “while dents have been made”, the problem of high insurance premiums was not yet resolved and there was more it could do. In its Plan, MHCLG said it was considering whether, for the duration of its remediation programmes, government might support the industry to reduce “unaffordably high” insurance bills.52

From: Public Accounts Committee, 17th Report - The Remediation of Dangerous Cladding (HC 362), 21 March 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Seventeenth Report of Session 2024-26

The government responded to the whole report on 4 June 2026.

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Treasury minutes: Government response to the Committee of Public Accounts on the Seventeenth report from Session 2024-25

Published 16 May 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government agrees with most of the Committee's recommendations on the remediation of dangerous cladding, with target dates between summer and December 2025, but disagrees with the recommendation on construction manufacturers paying a share of remediation costs.

  • On the Remediation Acceleration Plan, the government agrees to update the Committee in Autumn 2025. It says it "has not seen significant evidence that non-cladding defects are slowing down remediation" but is committed to removing blockers.
  • On construction manufacturers paying a share of remediation costs, the government disagrees. It says it is consulting on redress routes in the Construction Products Reform Green Paper and that leaseholders and tenants are protected from the cost of cladding remediation.
  • The government will publish latest building number estimates "by the summer", but the timing of cost and completion date estimates "will depend on the outcome of the forthcoming Spending Review".
  • On insurance, the government agrees and will share an update on progress by the end of 2025. It is gathering data on premiums and is considering whether government "might support industry to reduce fire related liabilities".

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