New cladding funding announced for highest-risk buildings under 11 metres high

The Ministry of Housing, Communities and Local Government said the announcement was part of a wider change to how buildings are prioritised for remediation.

Instead of focusing on building height, it will prioritise buildings based on the risk they pose to residents, “ensuring those with the most serious safety concerns are addressed first”.

Homes England, the government’s housing agency, will allocate the funding. Applications will be open from August and prioritised based on their level of risk.

A spokesperson for campaign group End our Cladding Scandal (EOCS) said the announcement was a “small step forward”, but that they “fear these are more incremental measures that will not enable Labour to put an end to the building safety crisis any time soon”.

“Over four years since the ‘case-by-case’ approach was introduced for buildings under 11m, and nearly a year since funding was announced, the recognition that leaseholders and residents in these buildings have faced prolonged uncertainty is welcome.

“But with limited funding, it risks becoming another narrow, bureaucratic scheme: giving people hope only to lock them into more years of delay,” it said.

A spokesperson added that a risk-based approach was “sensible only” if it sped up remediation and actually protected leaseholders and residents.

“It must not be used to ration justice, downgrade real concerns, or force costs onto leaseholders in buildings deemed a ‘lower priority’.

“The government must ensure proper oversight that doesn’t leave leaseholders and resident management companies alone in attritional battles with freeholders, housing associations, developers and managing agents,” they said. 

Kate Henderson, chief executive of the National Housing Federation, which represents housing association, welcomed the news.

She said: “This is an approach the sector has long called for, as height alone is not a reliable measure of risk, and will ensure capacity is directed to where it’s needed most.

“Housing associations continue to work hard to make all their buildings safe. The social housing sector is leading the way on remediation, but the scale and complexity of the challenge mean government support remains essential.

“This announcement is an important step towards accelerating remediation and ensuring residents in buildings of all heights feel safe in their homes. We will continue to work closely with the government to ensure all buildings with serious external wall safety risks are remediated as quickly as possible.”

Samantha Dixon, minister for building safety, said: “Residents shouldn’t be left worrying about living in homes with dangerous, flammable cladding, just because their building isn’t tall enough to qualify for funding.   

“That’s why we’re taking action so that buildings posing the greatest risk to life are prioritised, as well as streamlining processes to minimise delays and make responsibilities clear.”  

The news comes alongside a new review the Financial Conduct Authority (FCA) launched into how insurance premiums for buildings with fire safety risks have changed since the regulator brought in new rules in 2023.

The review will look at how insurers’ pricing approaches have changed over time, how firms are considering leaseholders’ interests when assessing whether their products deliver fair value, and how building remediation work is being taken into account in insurers’ risk assessments.

Rachel Blake, economic secretary to the Treasury, said: “Too many leaseholders have spent years facing uncertainty and have been unable to move on with their lives because of building safety issues they did not cause.

“As we work to make buildings safer, leaseholders deserve confidence that they are paying a fair price for insurance. The FCA’s review will help us better understand how insurers are pricing and whether leaseholders are getting fair value.”

The EOCS spokesperson said the Association of British Insurers’ fire safety reinsurance facility, which aims to improve access to insurance for landlords of buildings with combustible cladding and other fire safety issues, had “failed”. 

“Yet instead of intervening decisively, Labour has opted for yet another review. This must be swift, robust and transparent – and must lead to real action, not another report confirming what leaseholders already know from bitter experience,” they said.

The spokesperson added that the group will “judge this latest package not by ministerial language about proportionality, reform or acceleration, but by outcomes”.