Planning and Infrastructure Bill

Baroness Pinnock Excerpts

Report stage
Monday 27th October 2025 Lords Chamber

Moved by

[Baroness Pinnock]

87FD: After Clause 51, insert the following new Clause—
“Planning permission: Responsible Actors Scheme members(1) No member of the Responsible Actors Scheme may be granted planning permission or carry out major development of land in England through any agent or contractor or any other person acting for or on their behalf until the Secretary of State has revised the Scheme to ensure that—(a) all buildings developed by Responsible Actors Scheme members with relevant defects are remediated at no cost to leaseholders or commonhold unit owners, and(b) where a relevant defect arises from a failure to comply with building regulations or relevant approved documents in force at the time of the construction of a building by a Responsible Actors Scheme member, that defect must be corrected by remediating the building to current building regulations.(2) In this section—“building” means a self-contained building, or self-contained part of a building, in England that contains at least two dwellings;“major development” has the meaning given by article 2 of the Town and Country Planning (Development Management Procedure) (England) Order 2015 (S.I. 2015/595);“member of the Responsible Actors Scheme” means a member of the Scheme established under The Building Safety (Responsible Actors Scheme and Prohibitions) Regulations 2023 (S.I. 2023/753);“relevant defect” has the same means as in section 120 of the Building Safety Act 2022.”Member’s explanatory statement
This new clause prevents members of the Responsible Actors Scheme (the UK’s large developers) from applying for or undertaking major development until the Secretary of State has revised the Scheme to ensure that all unsafe blocks of flats are remediated.

[Baroness Pinnock (LD)]

My Lords, the purpose of tabling this amendment is twofold. First, it is to shine a beacon of light on a building scandal that has recently fallen out of the national spotlight. Secondly, it is to urge the Government to use this Bill to exert further pressure on those who caused the Grenfell Tower tragedy, where, I remind the House, 72 people lost their lives.

This amendment is not about pointing the finger of blame at this or past Governments. It is about seeking to put more pressure on those who created the conditions in which people died and which many leaseholders now have to endure, consequent on building safety failure.

What are the facts? The MHCLG estimates—I note that there is no current definitive figure—that between 5,900 and 9,000 buildings over 11 metres have unsafe cladding. This means that over a quarter of a million individual flats and perhaps nearly half a million people are affected, and that is just for those blocks over 11 metres, which are the subject of the Building Safety Act.

According to government figures for August this year, 1,927 blocks have had their remediation completed and a further 750 have started, but that leaves many thousands of leaseholders in limbo. I accept that the Government have attempted to improve this position with the remediation acceleration plan, alongside a promise for a remediation Bill. Can the Minister tell the House when that Bill is likely to be introduced?

The action plan commits to completing all remediation of blocks over 11 metres by 2029. That is a full 12 years after the Grenfell Tower fire. Meanwhile, leaseholders are paying the price for a situation that in no part is of their making. They are paying for it in extortionate insurance bills, in ever-rising service charges, and in knowing that they have no way out as their flats do not sell. For some, this has had very tragic consequences. The mother of one of those who ended their life as a direct result of this enormously stressful situation is sitting in the Gallery today and listening to this debate.

This Bill is an opportunity further to address the building safety scandal by putting more pressure on those who created these dangerous living conditions. Amendment 87FD in my name and co-signed by the noble Earl, Lord Lytton, seeks to require that construction companies that have signed up to the responsible actors scheme agree to the full remediation of all buildings—that includes those under 11 metres—before they are able to proceed with further major developments. This must be achieved at no cost to leaseholders. For those living in blocks of under 11 metres, currently the costs fall on them, despite their not having created the building scandal in any way. The major housebuilders are well able to afford to pay for the crisis they created, with annual operating profits being in the high hundreds of millions of pounds.

The noble Lord Young of Cookham wished to speak in support of this amendment, but, unfortunately, he is currently speaking in Grand Committee. He has asked me to say that he is in complete support of the amendment and will vote in the Lobby in support of it if a vote is called. I look forward to the Minister’s response, but if I am not satisfied that more can be extracted from those who created the crisis that is putting lives at risk, I will test the opinion of the House. I beg to move.

[The Earl of Lytton (CB)]

My Lords, it is a pleasure to support the amendment tabled by the noble Baroness, Lady Pinnock, to which I have added my name. We have both spent many years trying to persuade the Government that a clearer and more comprehensive solution is needed to protect everyone affected by the building safety crisis. Noble Lords will know of my professional insights into this matter as a chartered surveyor and of my previous attempts to get fair treatment for innocent homeowners. .

I continue to receive mail from home owners, small investors, property managers and conveyancers who are utterly dismayed at the complexity, uncertainty and capricious nature of the funding under government schemes, which involve matters of building height, cladding combustibility and unseen and previously unknowable compartmentation issues, with funding applying differentially to various classes of ownership or being dependent on the freeholder’s assets, plus identification of the person responsible and whether that person has effective agency in relation to remediation. In addition, there are two parallel standards of remediation at work.

Some noble Lords will recall that during the deliberations on the Building Safety Bill, I convened a briefing for Peers. We were addressed by the late Amanda Walker, to whom the noble Baroness, Lady Pinnock, was, I think, making reference. She told us how her life and world had been turned upside down. Her experience fits entirely with what others have told me of a living hell of unsellable property, unaffordable interim safety costs, insurance hikes and unknowable liabilities going forward—in short, what they thought was a safe and secure home being turned into a financial prison—and of the stress, ruined lives and total inequality of the exclusions from protection.

I joined Amanda’s mother and brother earlier today in a meeting with Minister Samantha Dixon. She gave the impression of listening very carefully to what we said. Mrs Walker’s recent email, which I paraphrase, says this: “My precious daughter was a very ardent campaigner on behalf of thousands of leaseholders who suffered because of loopholes in the Building Safety Act. This amendment”—she is referring to the amendment before us now—“will not help her but may help many others. The anxiety levels in so many people were painful to watch, and in my view ruined many lives”.

As the Minister knows, around 1.7 million leaseholders do not have full or even, in some cases, partial protection from the costs of remediating unsafe buildings. Those living in buildings below 11 metres have no protection at all, as the noble Baroness pointed out. Enfranchised leaseholders and those owning more than three properties are liable for any non-cladding remediation costs. Other leaseholders may have to contribute up to £15,000 to cover non-cladding costs—depending on the wealth of their freeholder, if you please. All these people are completely innocent of the causes that led to defects in their building, not just cladding but basic disregard of the building regulations in force at the time of construction.

The assumption is that lower rise buildings are safe because it is easier to mitigate risks, to escape from them and for fire and rescue services to attend to emergencies, but we do not actually know that they are safe. The proportionate standard under PAS 9980, which is the remediation standard frequently used, admits that spread of fire may be more rapid given the greater prevalence of combustible materials in the construction, and the capacity of many construction products to generate impenetrable choking smoke when burning, impeding escape. And who pays for any mitigation? Ultimately, it is the leaseholders.

According to the National Fire Chiefs Council, the current Building Safety Act’s three-tier approach—fully protected, partial or capped protection, and totally unprotected— is delaying remediation and leaving leaseholders in limbo. That funding is fragmented, and occupiers are left in unsafe buildings or are among the growing number, currently totalling more than 14,000, of those mandatorily evacuated, sometimes having to leave very modern buildings. The National Audit Office has found that the PAS 9980 risk-based approach to remediation is a cause of delays as different stakeholders argue over what constitutes “proportionate” remediation and “tolerable” risk, both of which terms appear in that document. Some 52 flat developers have signed up to the responsible actors scheme. Their remediation responsibility is to this proportionate standard only—never mind failure to build to the relevant building standards applicable at the time of construction.

Markets need transparency, and the Government need to be upfront about the general quality of buildings and building regulation compliance over past 30 years. It has long been an offence not to comply with building regulations. Market sentiment depends on clarity, but beyond the scope of the Government’s remediation portfolio, it is unclear what the reality actually is. So long as this doubt sloshes around the market, the insurance and lending sectors and, indeed, purchaser keenness, will remain febrile. All these may predispose a wider malaise the longer this persists, particularly in the lending markets, where the impact of new solvency regulations means that such uncertainties will have to be factored into securitisation risks, loan book management and consumer costs.

For evidence of the effects today, I point to flagging new flat construction, rising costs, schemes being mothballed and softening sales markets. Wagging fingers at insurers will not get rid of risk awareness and sentiment. Once you understand that something is a risk, it is there for ever. While I understand why the Government might not want to garner a lot of non-compliance data, if, despite consumers’ and the markets’ need to know, they choose not to do so, what I set out is the inevitable outcome, with implications for urban redevelopment and densification, homebuilding targets and, ultimately, stable communities.

This amendment would sweep up all building types, all tenures, and both cladding and non-cladding defects. It would tighten standards and encompass product manufacturers. Any planning delays under the amendment would be no more than the minimum necessary to process regulations immediately on Royal Assent, and I believe very few projects would be held up in practice. If the Government agree the principle that innocent people should not foot the bill for bad building practices or even for preserving the Government’s own policy objectives, they need at least to indicate to the noble Baroness, Lady Pinnock, that they propose to take this forward with serious intent. This amendment would give the Secretary of State the tools to do this and to end the two-tier remediation standard, the basic inequity and uncertainty of the current protections, and the market disruption that has accompanied them.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords for raising these important issues with their Amendment 87FD on the remediation of buildings by developers and I pay tribute to the noble Earl, Lord Lytton, and the noble Baroness, Lady Pinnock, for their tireless support for residents since the Grenfell Tower tragedy. I understand that the amendment is intended to protect residents and leaseholders. Unfortunately, its effect would be to slow remediation and risk stopping essential housebuilding.

I can reassure the noble Baroness, Lady Pinnock, that there has been no relaxing of the Government’s determination to deal with the significant remediation actions outstanding from Grenfell. I spoke to my honourable friend Minister Dixon just last week. She has now picked up the urgent action needed to accelerate remediation. She has already visited the Grenfell site, and I am pleased to hear that she has met Mrs Walker and other members of the Grenfell community. I know she takes her responsibility extremely seriously and she will continue the work of Minister Norris in dealing with this as quickly as possible. There will be a further opportunity in the very near future for this House to debate the issues of building safety and remediation, including their interaction with this Government’s bold ambitions on housing supply.

Amendment 87FD is intended to prevent members of the responsible actors scheme receiving new planning permissions or building new housing developments until the Government make fundamental changes to the scheme to require developers to remediate additional types of defect and apply a different approach to the remediation of external walls. In practice, this would mean that over 40 of the largest housebuilders in England would have to stop building new homes until the Government made changes to an essential remediation scheme that we assess would delay and undermine progress.

This landmark Bill is intended to get Britain building again, unleash economic growth and deliver on the promise of national renewal. It is critical in helping the Government to achieve the ambitious plan for change milestone of building 1.5 million safe and decent homes in England during the current Parliament. It is simply not compatible with the aims of the Bill to include a measure which would stop the largest housebuilders in this country building new homes. It would lead to major market uncertainty and disruption. Nor would the proposed changes to the responsible actors scheme serve the interests of residents and leaseholders, as they would delay remediation of their buildings for years.

Over 50 major developers have signed developer remediation contracts with the Government and committed to fix life-critical fire safety defects in over 2,370 buildings, at a cost of approximately £4.7 billion. This is supported by the statutory responsible actors scheme, which enables the Secretary of State to impose severe commercial consequences on any eligible developer who fails to follow through on their remediation obligations. Since signing the contracts, developers have assessed over 90% of relevant buildings and have started or completed works on 44% of buildings known to require works. This amendment would require fundamental changes in the responsible actors scheme by requiring developers to identify a different set of defects and require remediation to a different standard. Attempting to make those changes to the statutory scheme would undermine the remediation contracts that developers have signed with government. The result would be disastrous for residents and leaseholders, leading to long delays, operational and legal confusion, and uncertainty. Essential works to protect people could be set back by years.

The current approach to remediation under the developer remediation contract is proportionate and appropriate and uses PAS 9980, the same standard for external wall remediation as the Government’s wider remediation programme. The PAS 9980 standard is used for external wall system remediation because we are focused on mitigating risks to life safety, taking an evidence-based and proportionate approach. External wall remediation is assessed based on a fire risk appraisal of external walls which suggests remedial work or mitigation to improve a building’s risk rating through a holistic and fact-based assessment of its construction. Removal of combustible materials is often recommended but is not always necessary, including when other mitigating measures are taken. This proportionate approach to cladding remediation aims to manage fire risks and make sure that residents are safe, while preventing the kind of unnecessary works that can also be incredibly disruptive for residents.

To pick up the points made by the noble Earl, Lord Lytton, about insurance, we are clear that more needs to be done to protect leaseholders from very high insurance premiums. The fire safety reinsurance facility led by the Association of British Insurers and reinsurance broker McGill and Partners launched in April 2024. The facility aims to increase capacity in the market and may reduce high premiums for some of the most affected multi-occupancy buildings with fire safety issues. The facility has been renewed for a second year and is a viable option for building owners trying to find the best deal for their residents. In the first 12 months, over 760 buildings have been supported by the facility and now more buildings may benefit from the cover available, as the claims limit has increased to £75 million. In the remediation acceleration plan announced, we would work with the insurance industry to consider options for possible government support. We are currently engaging with industry and will provide an update on all this in due course.

This amendment has raised important technical issues about the remediation process. We cannot do full justice to them tonight, but there will be further opportunities for this House to debate the remediation of buildings at much greater length during the passage of the upcoming remediation Bill. I look forward to that opportunity. What is already clear, however, is that the amendment we are looking at tonight would undermine the core purpose of the Bill by greatly delaying work to remediate buildings, as well as putting at serious risk critical work to build new homes. Given these very serious concerns, I urge noble Lords to withdraw this amendment.

[Baroness Pinnock (LD)]

I thank the Minister, the noble Earl, Lord Lytton, and the Conservative Front Bench for taking part in this debate, but I am thoroughly disappointed by the remarks of the Minister and the noble Lord, Lord Jamieson. It is not an either/or. How can it be an either/or? According to the Minister’s response, either we enable housebuilders to build more homes or we accelerate even further the remediation of flats that are in a dangerous condition. It should not be either/or; it should be both/and. There is capacity within the housebuilding industry to do that.

[Baroness Taylor of Stevenage (Lab)]

I think I made it clear that the danger in the amendment is in doing just what the noble Baroness has spoken against. We want to move the remediation acceleration forward as quickly as possible, at the same time as building new homes. The danger with this amendment is that it slows the whole thing down and means that neither the remediation nor the building of new homes gets done quickly.

[Baroness Pinnock (LD)]

Unfortunately, I do not accept the Minister’s argument because, under the Government’s own remediation acceleration scheme, it will take another six or seven years for people to have their homes made safe. How is that right? We heard the compelling arguments from the noble Earl, Lord Lytton, about the 1.7 million leaseholders who will be required to pay many thousands of pounds to make their own homes safe when it is not their fault. It is not acceptable that we are still here, all these years after that awful fire at Grenfell Tower, trying to debate yet again what is going on.

[Lord Gove (Con)]

My Lords, I am hugely in sympathy with the noble Baroness in her aim but, as the author when I was in ministerial office of the responsible actors scheme, which was stoutly resisted by housing developers, I had to strike a balance between putting the squeeze on them—by making it clear that unless they acted to remediate, they would receive no planning permission whatever—and making sure that they could continue to build the houses we need. Have the noble Baroness and the supporters of this amendment looked at what the impact on the balance sheets of individual housebuilders might be, and what impact that would have on our current rate of buildout? Also, is it not the case that many of those who do not qualify at the moment for support for remediation—the so-called non-qualifying leaseholders—are people with extensive property portfolios? A line has to be drawn somewhere to ensure that those with significant wealth do not benefit, while those who do need support receive it.

[Baroness Pinnock (LD)]

I thank the noble Lord, Lord Gove, for his intervention. He is right that when the scheme was established, it was on the basis of squeezing the housebuilders as far as they could go. However, if I remember the figure correctly, one of the major housebuilders has made an operating profit in the last year of £870 million. Call me a curmudgeon if you like, but if some of that could be used to fund making the dangerous flats they built safe for people to live in, I think that is not a bad call.

We have had the argument but I am not content with the answers I have got, so I wish to test the opinion of the House. I hope that those on the Conservative Benches will support those who have spoken strong and hard in favour of remediation schemes, and in favour of leaseholders, through the Lobby.