Source · Select Committees · Public Accounts Committee

Recommendation 35

35 Deferred

Published remediation unit costs reflect older standards, not the lower-cost PAS 9980 methodology.

Conclusion
In December 2024, MHCLG published remediation cost information per square metre for high–rise buildings over 18 metres in the Building Safety Fund with a view to helping building owners understand the expected 56 Qq 31, 93, 93, 118; CA&G’s Report paras 13, 3.1, Appendix One 57 Ministry of Housing, Communities & Local Government, Annex A: Technical guidance for applicants of building safety funding applying for funding via PAS 9980: 2022, updated 2 April 2024 58 RDC0099 Written evidence submitted by the National Fire Chiefs Council 59 Q 3; RDC0145 Written evidence submitted by End Our Cladding Scandal 22 range of costs for remediation and provide greater transparency to the public. MHCLG reported that the expected costs should range from £739 to £2,528 per m2. For most of the buildings in this dataset, remediation works had been agreed under the more risk-averse standard that pre–dated PAS 9980. Remediation costs had therefore, in most cases, included the removal and replacement of unsafe cladding. The proportionate approach to remediation that MHCLG adopted in 2022, and the PAS 9980 standard that supports it, favour lower cost mitigation measures such as sprinklers where risk to life is deemed tolerable. MHCLG therefore expected unit costs to change as more buildings are assessed under the newer standard.60
Government Response Summary
The government agrees with the observation and commits to publishing the latest building number estimates by summer 2025. However, the exact timing for publishing estimates of costs and works completion dates is deferred, as it depends on the outcome of the forthcoming Spending Review.
Government Response Deferred
HM Government Deferred
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 5.2 The government will publish latest building number estimates by the summer. The exact timing of publication of estimates of costs and works completion dates, however, will depend on the outcome of the forthcoming Spending Review. A firmer publication timeline can be provided once this is known. 5.3 The government welcomes the review by Paul Morrell OBE and Anneliese Day KC. Their review maps out the existing system, identifies weaknesses, and sets out recommendations for addressing these where they considered it appropriate. It makes clear this is a complex area in need of reform. The Construction Products Reform Green Paper, published on 26 February 2025, is the government’s direct response to the review and signals its commitment for comprehensive proposals for system wide reforms to the construction products regime to give consumers confidence and underpin supply chains and housing delivery.