Source · Select Committees · Public Accounts Committee

Recommendation 42

42

Cladding remediation funding disproportionately prioritised private over social landlords, hindering social housing progress.

Conclusion
The National Housing Federation (NHF) told us that the government’s approach to funding remediation for non–ACM cladding allocated public funding in a way that prioritised tenure over risk. It said that the arrangements meant that, in reality, 90% of public funding for remediating non–ACM type cladding had gone to private building owners and only 10% to social landlords.71 When the previous Committee last looked at this issue, MHCLG had announced (in May 2018) that it would make £400 million available to social providers to fund the removal of Grenfell-style Aluminium Composite Material cladding from buildings over 18 metres.72 MHCLG told us that a little under £570 million had gone into social housing through the different government schemes. In November 2024, the NAO reported that MHCLG expected social providers to fund an estimated £3.8 billion of remediation costs for their buildings and that it had set a high threshold for 69 Q 82; Letter from Ministry of Housing, Communities and Local Government to Committee of Public Accounts, 18 February 2025 70 Qq 75, 78-79; C&AG’s Report, paras 3.10; Letter from Ministry of Housing, Communities and Local Government to Committee of Public Accounts, 18 February 2025 71 Q 21 72 Committee of Public Accounts, Progress in remediating dangerous cladding, Sixteenth Report of Session 2019-21, HC 406, 16 September 2020 25 access to government funding. The NHF told us that equal access to funding with the private sector would be a real factor in unlocking pace for the social housing sector.73