Sixteenth Report - Progress in remediating dangerous cladding
Select Committee
Public Accounts Committee
HC 406
16 September 2020
Government Response (AI assessment · 25 of 25 classified)
Accepted
15
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Sixteenth report from Session 2019-21 · published 18 Nov 2020
Recommendations & Conclusions
25 results
2
Recommendation
Accepted in Part
The Department is not fully funding the replacement of forms of dangerous cladding which are...
Recommendation
The Department is not fully funding the replacement of forms of dangerous cladding which are different from that used on Grenfell Tower, nor is it prioritising spending according to greatest risks or need. While the Department has established a new …
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Government Response Summary
The government agrees with the recommendation but does not commit to publishing the requested impact assessment or writing to the committee within three months, instead outlining existing funding and legislative proposals to address unsafe cladding and building safety charges.
HM Treasury
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3
Recommendation
Accepted
The Department has no knowledge of how many care homes below 18 metres in height...
Recommendation
The Department has no knowledge of how many care homes below 18 metres in height have dangerous cladding. The Department has published advice that the risks of unsafe cladding are increased for buildings, such as care homes, where there are …
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Government Response Summary
The government agrees to the recommendation, committing to work with MHCLG and sector representatives to improve understanding of fire safety risks in care homes below 18 metres and to provide an update on data collection by Spring 2021.
HM Treasury
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4
Recommendation
Accepted
The Department has not done enough to address spiralling insurance costs and ‘nil’ mortgage valuations.
Recommendation
The Department has not done enough to address spiralling insurance costs and ‘nil’ mortgage valuations. Private leaseholders in blocks with dangerous cladding have received ‘nil’ valuations for their properties, meaning they have found it impossible to sell or remortgage, while …
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Government Response Summary
The government agrees with the recommendation and aims for May 2021 implementation. It will encourage lenders to adopt proportionate EWS1 responses, lead cross-sector workstreams to resolve professional indemnity insurance and capacity issues, and work with industry on escalating insurance premiums. The department commits to provide an update by December 2020.
HM Treasury
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5
Recommendation
Accepted in Part
There is a shortage of specialist skills to support the remediation of buildings with unsafe...
Recommendation
There is a shortage of specialist skills to support the remediation of buildings with unsafe cladding. There is a shortage of fire safety expertise, both in the enforcement and inspection of buildings with unsafe cladding; this has been a particular …
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Government Response Summary
The government agrees with the recommendation with a December 2020 target. It notes it has engaged industry from the outset and established an Industry Response Group, and is addressing fire expertise and indemnity insurance through joint workstreams, suggesting the concerns are being tackled through ongoing efforts rather than a new specific assessment within three months.
HM Treasury
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1
Conclusion
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Housing, Communities and Local Government (the Department) about the remediation of dangerous of cladding on high-rise buildings.1
Government Response Summary
The government response is entirely irrelevant to the committee's introductory statement about taking evidence on cladding, discussing NHS and social care matters instead.
HM Treasury
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6
Conclusion
Not Addressed
In a review commissioned jointly by the Department and the Home Office in the wake...
Conclusion
In a review commissioned jointly by the Department and the Home Office in the wake of the Grenfell Tower fire, Dame Judith Hackitt found that the building regulatory system was “not fit for purpose” to protect high-rise buildings.16 While the …
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Government Response Summary
The government response provided is entirely unrelated boilerplate text about the Restoration and Renewal of the Palace of Westminster and historical PAC report statistics, failing to address the committee's conclusion on building safety.
HM Treasury
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7
Recommendation
Accepted
Aluminium composite material cladding is not the only form of flammable cladding that has prompted...
Recommendation
Aluminium composite material cladding is not the only form of flammable cladding that has prompted serious safety concerns.19 In January 2020 the Department published 9 Q 19 10 Q 59 11 C&AG’s Report, paragraph 11 12 Hansard HC, 19 July …
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Government Response Summary
The government accepts the recommendation, acknowledging non-ACM cladding concerns, outlining its actions to broaden the ban on combustible materials, and committing to provide an update on remediation progress by December 2020.
HM Treasury
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8
Recommendation
Accepted
The Department told us it estimated the costs of replacing this cladding as between £3...
Recommendation
The Department told us it estimated the costs of replacing this cladding as between £3 billion and £3.5 billion; the new £1 billion fund would therefore be expected to cover up to a third of these costs. It said the …
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Government Response Summary
The government accepts the recommendation and clarifies that the Building Safety Fund will prioritise remediation for buildings 18 metres and above where financial barriers are greatest, assessing eligibility based on risk and leaseholder finances, and will provide an update on financial support.
HM Treasury
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9
Recommendation
Accepted
The Department intends for the £1 billion Building Safety Fund for non-ACM cladding to be...
Recommendation
The Department intends for the £1 billion Building Safety Fund for non-ACM cladding to be committed in full by the end of the 2020–21 financial year. The National Audit Office has suggested that this timetable would pose potentially significant challenges …
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Government Response Summary
The government accepts the recommendation, stating it has engaged industry to ensure sufficient capacity and will provide an update on resources to inspect and remediate buildings by December 2020.
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10
Conclusion
Accepted
The Department said it was unacceptable that buildings of any height had unsafe cladding, not...
Conclusion
The Department said it was unacceptable that buildings of any height had unsafe cladding, not just high-rise buildings (i.e. those above 18 metres in height). Nevertheless, it said it was not funding the replacement of cladding in buildings below 18 …
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Government Response Summary
The department commits to writing to the Committee in spring 2021 to provide an update on the data collection exercise regarding external wall systems on 11-18 metre high residential buildings.
HM Treasury
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11
Recommendation
Acknowledged
One category of buildings below 18 metres that might present increased risks are care homes.
Recommendation
One category of buildings below 18 metres that might present increased risks are care homes. In January 2020 the Department published advice from its independent expert advisory panel that buildings of any height with residents who need significant assistance to …
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Government Response Summary
The government acknowledges the fire safety risks in care homes, stating that work by the CQC could be explored regarding these risks.
HM Treasury
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12
Conclusion
Accepted
The Department understands there are around 40,000 care homes, sheltered homes, and hospitals (i.e.
Conclusion
The Department understands there are around 40,000 care homes, sheltered homes, and hospitals (i.e. buildings with residents who might need significant assistance to evacuate) below 18 metres in England, of which 98% are below 11 metres (less than four storeys).40 …
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Government Response Summary
The government commits to writing to the Committee in Spring 2021 with an update on data collection for external wall systems of 11-18 metres high residential buildings, addressing the committee's observation about data on care homes.
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13
Conclusion
Accepted
The number of residents living in buildings with unsafe cladding is not clear.
Conclusion
The number of residents living in buildings with unsafe cladding is not clear. The Department estimates there are over 20,000 homes in around 240 high-rise buildings yet to be remediated with unsafe cladding similar to that used on the Grenfell …
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Government Response Summary
The government commits to writing to the Committee in Spring 2021 with an update on data collection for external wall systems of 11-18 metres high residential buildings, directly addressing the committee's concern about unclear numbers of affected residents in such buildings.
HM Treasury
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14
Conclusion
Accepted
Living in unsafe buildings has clearly impacted residents’ mental well-being.
Conclusion
Living in unsafe buildings has clearly impacted residents’ mental well-being. According to a survey undertaken by UK Cladding Action Group, of the 550 residents that took part, nine out of ten leaseholders in flats with unsafe cladding say their mental …
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Government Response Summary
The government agrees with the committee's observation, committing to providing greater transparency for residents, giving them a stronger voice through the Building Safety Bill, and allocating £1.6 billion for remediation. It is also investigating steps to reduce waking watch costs and encourages use of more cost-effective measures.
HM Treasury
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15
Conclusion
Accepted
Private leaseholders’ emotional strain has been compounded by rising costs passed on to them by...
Conclusion
Private leaseholders’ emotional strain has been compounded by rising costs passed on to them by their building owners. These costs are often as a result of interim fire safety measures. The Department estimated a common interim measure, waking watches (overnight …
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Government Response Summary
The government states that it has already published data on waking watch costs in October 2020 to provide transparency, and the National Fire Chiefs Council has already published updated guidance promoting cost-effective interim measures.
HM Treasury
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16
Conclusion
Accepted
Additional costs may also arrive through wider fire safety issues discovered during remediation works and...
Conclusion
Additional costs may also arrive through wider fire safety issues discovered during remediation works and need correction. The National Audit Office found that cladding inspection has revealed other significant flaws in construction and fire safety in many 42 Ministry of …
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Government Response Summary
The government agrees with the committee's (implicit) recommendation, outlining actions such as speeding up remediation of wider fire safety issues, providing £1.6bn subsidy, publishing advice notes, consulting on a new Building Safety Regulator, working with RICS on valuation, and updating on data collection for 11-18m buildings.
HM Treasury
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17
Conclusion
Accepted
We asked the Department if it knew of any impact to social sector rents as...
Conclusion
We asked the Department if it knew of any impact to social sector rents as a result of cladding replacement. It told us that it does not collect the information currently, but it has received information from social landlords, and …
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Government Response Summary
The government has accepted the implied recommendation for better data collection and is developing a new system for external wall systems, which will capture key building data and tenure, with collection expected to start in early 2021.
HM Treasury
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18
Recommendation
Accepted in Part
Leaseholders in blocks with dangerous cladding have had their properties valued nil, making it impossible...
Recommendation
Leaseholders in blocks with dangerous cladding have had their properties valued nil, making it impossible for them to sell or remortgage. This issue was raised with us many times in written evidence from across the sector and confidentially from residents.54 …
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Government Response Summary
The government acknowledges the issue of nil valuations and states it does not support a blanket use of the EWS1 process for all buildings, actively encouraging lenders to adopt a more proportionate response and use alternative evidence.
HM Treasury
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19
Conclusion
Accepted
However, the process has not been working as intended.
Conclusion
However, the process has not been working as intended. The process can be expensive and lasts for only five years, with costs often passed onto leaseholders.57 The process has been slow; the demand for the work to inspect external walls …
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Government Response Summary
The government agrees with the committee's concerns, setting a May 2021 target. It is encouraging lenders to use a more proportionate approach for EWS1 forms, has joint workstreams to address professional capacity and indemnity insurance, and is working with industry on building insurance challenges. The department will update the committee by December 2020.
HM Treasury
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20
Recommendation
Accepted in Part
In response to our concern that leaseholders are receiving nil valuations, the Department told us...
Recommendation
In response to our concern that leaseholders are receiving nil valuations, the Department told us that this is an “industry issue” but it is engaging with lenders and involving the Treasury on this.63 UK Finance wrote to us to say …
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Government Response Summary
The government reiterates its position, stating it does not support a blanket use of the EWS1 process and is encouraging lenders to adopt a more proportionate response and use alternative evidence for valuation assessments.
HM Treasury
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21
Conclusion
Acknowledged
We made it clear to the Department that professional indemnity insurance has been regularly brought...
Conclusion
We made it clear to the Department that professional indemnity insurance has been regularly brought to our attention by the industry and needs sorting as a priority.67 The Department told us that it is working with the Fire Industry Association …
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Government Response Summary
The department acknowledges the challenges with professional fire expertise and indemnity insurance, stating they have joint workstreams to address these issues. They are also working with industry to understand challenges in accessing affordable buildings insurance.
HM Treasury
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22
Conclusion
Acknowledged
While leaseholders have been unable to move or remortgage, some have seen their insurances premiums...
Conclusion
While leaseholders have been unable to move or remortgage, some have seen their insurances premiums rise significantly. For those in buildings with serious fire safety defects, there are examples of premiums rising by over 400%.69 This is on top of …
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Government Response Summary
The department acknowledges the challenges with affordable buildings insurance and states that officials are working with industry to better understand the issue.
HM Treasury
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23
Recommendation
Acknowledged
The National Audit Office found that there has been a shortage of skills or personnel...
Recommendation
The National Audit Office found that there has been a shortage of skills or personnel needed to complete remediation work.72 However, shortages are not restricted to the removal and replacement of cladding. The Local Government Association wrote to us outlining …
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Government Response Summary
The government acknowledges the challenges with professional fire expertise and indemnity insurance, stating it has joint workstreams with industry actively seeking to address these issues.
HM Treasury
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24
Recommendation
Accepted
We raised concerns with the Department about the ability to complete remediation work by the...
Recommendation
We raised concerns with the Department about the ability to complete remediation work by the end of 2021 with the current skills capacity. The Department told us that it believes there is sufficient capacity, but recognised the timescale as “challenging”.77 …
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Government Response Summary
The government describes its ongoing efforts, stating it has engaged industry from the outset to ensure sufficient capacity and address supply chain blockages, including establishing the Industry Response Group.
HM Treasury
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25
Recommendation
Accepted
The demand for resources to inspect and remediate buildings with safety concerns is already high...
Recommendation
The demand for resources to inspect and remediate buildings with safety concerns is already high and set to increase with the new £1 billion Building Safety Fund. The Department estimates there to be around 1,700 buildings with unsafe non-ACM cladding …
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Government Response Summary
The government accepts the recommendation, outlining that it has engaged industry to ensure capacity and established an Industry Response Group, and will provide an update on resources to the Committee by December 2020.
HM Treasury
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