Select committee: Public Accounts Committee
Conclusion 38
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 ↗
Conclusion (the committee's words)
HM Treasury has agreed to provide short–term funding that would allow remediation to progress in advance of the Levy recouping funds in later years. Based on MHCLG’s financial planning, the NAO highlighted that total taxpayer exposure could reach a maximum of £6.3 billion in 2030-31 before all Levy receipts are collected.63 When we asked MHCLG what impact its acceleration plans might have on the spending cap, MHCLG assured us that taxpayer contributions towards remediation costs would remain capped at 60 C&AG’s Report, para 1.11; Ministry of Housing, Communities and Local Government, Cladding remediation unit costs: analysis of high-rise non-ACM buildings - GOV.UK, December 2024 61 RDC0006 Written evidence submitted by the Home Builders Federation; RDC0145 Written evidence submitted by End Our Cladding Scandal 62 Qq 88, 91, 93–96; C&AG’s Report, figure 10, para 3.11 63 C&AG’s Report, paras 16, 3.12 23 £5.1 billion. We therefore asked MHCLG whether accelerating remediation might increase taxpayer exposure, but officials did not provide an update on the figure. In a letter following the evidence session, MHCLG advised that its figures were estimates based on several factors including the total number of buildings requiring remediation, remediation costs, how fast buildings are fixed, and the quantum of levy receipts (which itself depends on new houses built). It assured us it continued to examine these and would be updating forecasts later in the year.64 Managing risk of fraud
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".