Select committee: Public Accounts Committee
Recommendation 37
17th Report - The Remediation of Dangerous Cladding
Published 21 Mar 2025
Addressed to HM Treasury
Public Accounts Committee The Remediation of Dangerous Cladding All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Based on its central estimate of £16.6 billion for total remediation costs, MHCLG anticipated that around £7.5 billion would be paid for directly by private building owners, developers and social housing providers, and the remaining £9.1 billion would be funded through MHCLG’s grant programmes. MHCLG planned to cap the amount of public money spent on remediation at £5.1 billion, and to recoup any spending over this amount from developers through a new Building Safety Levy (the Levy) on new developments. MHCLG told us it was keen to reduce the uncertainty around building numbers and how much will need to be paid out through government grant programmes but explained that the duration of the Levy could be changed as needed to ensure it covered the final bill.62
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.
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".