Homeowners: Cladding-related Costs

Lord German Excerpts

Thursday 24th June 2021 Lords Chamber

[Lord Greenhalgh (Con)]

We have continued with the progress of the existing fund, which is now at over £5 billion. As I have said, nearly 700 buildings have had their funding approved for the remediation of other forms of unsafe cladding, similar to the type seen on Grenfell Tower. Obviously, further details around the financing scheme will be announced in due course.

[Lord German (LD)]

On 24 May, I asked the Minister about the funding gap in remediating external wall cladding. The Government estimate that £15 billion will be required to fully remediate. The Government are putting in £5.1 billion and there is £2 billion from developers. That leaves a gap of £7.9 billion. In reply, he said,

“We need to watch this very carefully.”—[Official Report, 24/5/21; col. 807.]


Having cast his watchful eye over this matter, will he say whether these figures have altered, and how the gap will be filled?

[Lord Greenhalgh (Con)]

My Lords, those are not official figures. There are a lot of estimates, and there is a great range in those estimates. We are carrying out some detailed research so that we can properly understand the incidents, particularly in lower-rise and medium-rise buildings, where remediation would be required. Then we will be in a position to know the burden that will potentially fall either on the taxpayer or on leaseholders.