Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the effect on the economy of leaseholders (a) losing their home and (b) declaring bankruptcy as a result of the costs of resolving fire safety issues relating to (i) cladding removal, (ii) balcony remediation, (iii) replacing combustible insulation, (iv) replacing missing fire breaks, (v) increased insurance premiums and (vi) waking watches.

We have not conducted an economic assessment. However, we do recognise the financial pressures being placed on leaseholders as a result of historic remediation costs.

We have been clear that building owners and industry should make buildings safe without passing on costs to leaseholders – and where they have not stepped up, we have stepped in. The Government is taking the following steps to ease these pressures:

• In relation to removal and replacement of unsafe cladding systems, we are providing over £5 billion of Government grant funding for the removal of unsafe cladding systems from buildings of 18m and above, and a generous finance scheme (under which no leaseholder will need to pay more than £50 per month) for the removal of unsafe cladding systems from buildings of 11-18m in height.
• As part of our Building Safety Fund funding for remediation of unsafe cladding systems, the Government is providing full funding for the replacement of combustible insulation and missing or defective cavity barriers where these form part of the external wall system.
• In relation to insurance premia we recognise that some leaseholders in high rise buildings are facing rises in buildings insurance. Officials, leaseholders, the ABI and British Insurance Brokers’ Association (BIBA) have met to discuss buildings insurance. The Government is working with industry and looking at a range of options.
• In relation to waking watch costs, the Government has announced a £30 million Waking Watch Relief Fund, to promote replacement of costly Waking Watch interim safety measures with fire alarms. This is consistent with guidance from the National Fire Chiefs Council published in 2019, which emphasises the need to consider installation of common fire alarms where measures are now, or are likely to be in place for the longer term: https://www.nationalfirechiefs.org.uk/Simultaneous-evacuation-guidance