November 4, 2024Publishing a target date for the completion of dangerous cladding remediation works and providing greater transparency on remediation performance are two key recommendations from a new National Audit Office (NAO) report.
In its first report on the government’s remediation programme since five separate programmes were brought together into a single scheme in 2023, the NAO says there has been a “substantial increase” in remediation activity since 2020. So far, according to the NAO, 4,771 buildings have been brought into the scheme, but it’s taking longer than expected to identify the remainder and some may never be identified. With a potential 7,200 buildings or more (up to 60%) still to be identified, many residents still do not know when their buildings will be made safe, contributing to their suffering “significant financial and emotional distress”.
While building owners are responsible for fixing their buildings, engagement with the government’s grant programmes is voluntary. As the NAO previously reported, incomplete building records, construction materials that differ from those on plans, and problems tracing owners can make identifying affected buildings difficult.
Seven years after the Grenfell Tower fire, 98% of estimated high-rise buildings (over 18 metres) with dangerous cladding were accounted for, with mandatory registration of high-rise buildings under the Building Safety Act 2022 helping to identify any that remain. But there is no mandatory registration for the greater number of medium-rise buildings (11 to 18 metres), and the Ministry of Housing, Communities and Local Government (MHCLG) understands some building owners may be reluctant to engage for fear of uncovering problems outside the scope for government funding, and others may lack the time and knowledge to navigate the process.
Of the 4,771 buildings in the government’s scheme – equivalent to 258,000 homes – remediation work has yet to start on over half, is in progress in a fifth, with around one third complete. But of all buildings potentially in scope, work is complete for only 12-16%.
The report found that it will cost an estimated £16.6 billion to fix unsafe cladding on all buildings over 11 metres in England. MHCLG expects to provide £9.1 billion of this, with the remainder funded by developers who have agreed to remediate buildings they developed, private owners or social housing providers.
Tommy London/Alamy Stock Photo
To keep taxpayer contributions within a £5.1bn cap over the long-term, MHCLG plans to recoup £700 million through refunds from developers for remediation works the taxpayer has already funded, and around £3.4 billion from a new Building Safety Levy, which is not expected to be implemented until autumn 2025 at the earliest.
The report also found that the government needs to do more to ensure that its remediation programme is not at cross-purposes with its wider priorities, such as decarbonisation and building new homes
“Seven years on from the Grenfell Tower fire there has been progress but considerable uncertainty remains regarding the number of buildings needing remediation, costs, timelines and recouping public spending,” said Gareth Davies, head of the NAO. “There is a long way to go before all affected buildings are made safe, and risks MHCLG must address if its approach is to succeed.
“Putting the onus on developers to pay and introducing a more proportionate approach to remediation should help to protect taxpayers’ money. Yet it has also created grounds for dispute, causing delays.
“To stick to its £5.1 billion cap in the long run, MHCLG needs to ensure that it can recoup funds through successful implementation of the proposed Building Safety Levy.”
The NAO report follows the government’s Budget announcement last week that investment in building safety remediation will rise to over £1 billion in 2025-26, including new investment to speed up remediation of social housing. The government will set out further steps on remediation later in the autumn.
Commenting on the report, Chair of the Committee of Public Accounts, Sir Geoffrey Clifton-Brown, said: “Seven years after the tragedy at Grenfell, many residents are still in the dark about when their homes will be made safe. Remediation work is yet to begin on half of the buildings known to have unsafe cladding. Many buildings with dangerous cladding have still not been identified. I take a personal interest in this issue having met victims at Grenfell shortly after the fire and due to my declared interest as a chartered surveyor.
“The programme is falling behind schedule and MHCLG needs to pick up the pace to get it back on track. There is a long road ahead to resolve the cladding crisis and the government must take steps to better protect the taxpayer. It urgently needs to ensure its fraud controls are working and that developers contribute their fair share to the costs.”
