Source · Select Committees · Public Accounts Committee
17th Report - The Remediation of Dangerous Cladding
Public Accounts Committee
HC 362
Published 21 March 2025
Recommendations
39
Deferred
Relaxed funding criteria in early remediation schemes increased fraud risk for taxpayers.
Recommendation
The NAO report found that previous attempts by MHCLG to accelerate remediation resulted in it relaxing some of its safeguards and the taxpayer being exposed to an increased risk of fraud. This included moving from making payments in arrears to …
Read more
Government Response Summary
The government agrees and will provide an update on the feasibility of fraud measurement by the end of 2025. However, full outputs from the fraud loss measurement exercise, which has an 18-month standard, are not expected until Autumn 2026.
HM Treasury
View Details →
41
Deferred
MHCLG details improved fraud prevention and detection measures for building safety schemes.
Recommendation
MHCLG told us how the design of Homes England’s Cladding Safety Scheme would help reduce fraud in future. It explained that the new scheme captures information centrally, rather than relying on one team to pull together more disparate sources of …
Read more
Government Response Summary
The government agrees and will provide an update on the feasibility of fraud measurement by the end of 2025. Full outputs from the fraud loss measurement exercise are anticipated by Autumn 2026.
HM Treasury
View Details →
Conclusions (3)
35
Conclusion
Deferred
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 …
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.
38
Conclusion
Deferred
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 …
Government Response Summary
The government committed to publishing latest building number estimates by summer 2025, but the publication of estimates for costs and works completion dates is deferred until after the forthcoming Spending Review.
40
Conclusion
Deferred
The NAO report also highlighted how MHCLG was late to produce a full fraud risk assessment on the Building Safety Fund, only completing one in
Government Response Summary
The government committed to providing an update on the feasibility of fraud measurement by the end of 2025, but full outputs from the fraud loss measurement process will not be available until Autumn 2026.