What is the government cladding remediation fund?

The government cladding remediation fund for private residential buildings is currently made up of one live scheme, and another that is now closed to new applications. Both are aimed specifically at buildings of 18 metres or more in height (high rise buildings). The closed scheme is the Private Sector ACM Cladding Remediation Fund. This was set up to deal with the costs of removing and replacing unsafe cladding made from Aluminium Composite Material (ACM). It is useful to note that whilst this scheme is now closed, the government may still look favourably upon suitable applications, so it is important not to write it off altogether if your 18m+ building is ACM-clad.

The live scheme is the Building Safety Fund. This has been set up to cover the costs of removing and replacing unsafe non ACM cladding. There is a further cladding remediation fund in the pipeline which is designed to address fire safety defects in buildings of 11-18 metres in height (mid-rise buildings), called the Mid Rise Scheme, in line with the government’s promise that leaseholders of any building over 11 metres in height should not have to pay for unsafe cladding rectification. The Mid Rise Scheme is due to be launched at the end of March, early April 2023. Cladding Consulting has met with the Director General for Building Safety, Grenfell and Net Zero at the Department for Levelling Up, Housing and Communities and given valuable feedback on how the cladding remediation fund is working on ground level.

Cladding on high-rise building

The Private Sector ACM Cladding Remediation Fund

The Private Sector ACM Cladding Remediation Fund was launched in 2019 to cover the cost of the replacement of unsafe ACM cladding on private residential buildings in England over 18 metres in height.

Grant funding in the region of £200 million was made available to cover all reasonable costs for the remediation of unsafe ACM cladding.

The fund was intended for the benefit of leaseholders who would otherwise incur the costs of making safe their living accommodation through service charge arrangements. Where leaseholders were not liable for remediation works through their service charge under the terms of their lease, and the building was run by a leaseholder right-to-manage company, the building was potentially still eligible for funding.

The key criteria meant applicants would need to confirm they would be replacing unsafe ACM cladding with materials of limited combustibility. Applications for buildings comprising mixed residential and commercial use are also in scope.

Buildings where a warranty claim for the full costs of remediation had been accepted, and applications for buildings owned by social landlords who should instead apply via their own dedicated cladding remediation fund (known as the Social Sector Fund), would not be eligible.

Applications for the Private Sector ACM Cladding Remediation Fund closed on 31 st December 2019. However, it is worth exploring whether you may still be able to make an application, and you can do that by contacting the helpful team at Cladding Consulting.

Worker applying cladding exterior

The Building Safety Fund for non-ACM cladding remediation

The Building Safety Fund (BSF) is currently open for applications from eligible parties seeking to cover the costs of unsafe non-ACM cladding remediation. It is solely for residential buildings of more than 18 metres in height.

This particular government cladding remediation fund, worth £4.5 billion, originally opened in 2020, but was subsequently paused. It re-opened for applications again in July 2022, in an adapted format.

The fund has been adapted to put more emphasis on the individual risk levels of each applicant’s building. This will mean that those with the highest needs can be prioritised, the pace of addressing life-critical safety fire risk defects hastened, and the funding award process made more proportionate to the level of risk presented by the building.

The government is keen to reassure leaseholders and residents that it is on their side and committed to ensuring their safety at home. As such, it wants all eligible buildings to be made safe as soon as possible.

With this in mind, all new BSF applications now call for applicants to provide an assessment of the risks posed by fire spread over external walls to identify what, if any, work is required. This process, known as the Fire Risk Appraisal of External Walls (FRAEW), must be carried out by competent professionals in line with the new PAS 9980:2022 code of practice, which aims to make remediation solutions more proportionate to the building’s individual level of risk.

For applicants already registered with the BSF before it was paused, there is the choice to continue with the original process, or switch to the new procedure using an FRAEW. If you are unsure of the best route to take in your individual situation, you are welcome to get in touch for a free consultation. If you choose us to manage your cladding remediation, the fees will be covered by the government’s cladding remediation fund.

Free Consultation

Discover whether you’re eligible for cladding remediation funding, and let Cladding Consulting manage the entire process on your behalf, from start to finish.

Do you need help navigating your cladding remediation fund application? We share the government’s commitment to supporting leaseholders to a position of safety and reassurance by expertly managing the entire cladding remediation process, from initial appraisal to completion of works, with minimal outlay for the applicant.

Whether you are at the beginning of your journey towards peace of mind, part way through a cladding remediation fund application, or entering into negotiations with a developer for funding through the Developer Pledge, we can help. Please provide a few details and we will get back to you.

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End to end service

From discovering you have combustible material on your building through to receiving remediation funding everything is taken care of.

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Knowledge and experience

Our in depth understanding of BSF requirements and experience in working with developers means we avoid unnecessary funding delays or exclusions.

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We use a comprehensive team covering all necessary specialties from surveyors to designers and fire safety engineers who have already navigated the process and can work together seamlessly.

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Frequently Asked Questions

The Building Safety Fund is designed to cover the costs of removing and replacing unsafe non-ACM cladding from residential high rise buildings of at least 18 metres in height, with a 30cm tolerance.

The fund covers ‘reasonable’ capital costs for eligible works necessary to remove the cladding, it also covers Cladding Consulting’s fees plus:

  • Direct access related to qualifying works (e.g. scaffolding, mast climber, etc.),
  • Removal and disposal of existing non-ACM cladding
  • Replacement materials
  • Labour and reasonable contractor overheads
  • Professional fees for qualifying items
  • Managing agents’ fees for administering qualifying expenditure
  • Extraordinary technical requirements which incur extra costs essential to but not normally associated with removing and replacing unsafe cladding systems

Cladding is the outer layer of a building that has been added to provide insulation, weather proofing and improve the appeal of a building. Some cladding systems have been found to contain combustible material, which could lead to the rapid spread of fire. Once an intrusive inspection has been undertaken, other defects are often uncovered, such as missing fire breaks, which can increase the spread of fire.

Some cladding, however, has been found to be less fire resistant than is considered safe. Wood and high pressure laminate cladding is more prone to catching fire, whilst Aluminium Composite Material (ACM) cladding, particularly when it has flammable insulation, is considered to be the most combustible.

Aluminium composite material (ACM) is a flat panel made from two thin aluminium sheets bonded to a non-aluminium core, between three and seven millimetres thick. The panels have a painted or metallic finish, for example a copper or zinc effect.

ACM with unmodified polyethylene filler with any type of insulation presents a significant hazard on any building, and should therefore be replaced. As of 1 June 2022, there has been an outright ban on the use of these types of panels on all new buildings of any height.

Our service is designed to support leaseholders, managing agents and other parties with an interest in or responsibility for a building that has fire safety defects such as unsafe cladding. There is nothing to pay upfront and all fees will be covered by the cladding remediation fund if the building is eligible.

Our long term experience in the property sector led us to identify a need for guidance through the process of applying to the cladding remediation fund, which is renowned for its complexity and known to be very time consuming.

We take applicants through the entire process, from finding out whether their building has fire safety defects and arranging the necessary documentary proof, to receiving the funds to rectify the problem and appointing and managing the contractors who will undertake the remediation works.

We will also put together an expert team that ensures the project runs smoothly from inception to completion – this is often a lengthy process as our projects generally take a minimum of a year and sometimes up to three years to process. Teams consist of various experts, including façade designers, surveyors, fire engineers, specialists in measured surveys, contractors who can do intrusive inspections and contractors who can price the
work.

In order to secure the money from the government cladding remediation fund we’ll compile a team that will need to be on board to get the specifications of the work, reports that need doing and then the surveyors will bring in contractors who will tender the work and report to the client. We will assist in the administrative aspects of putting all of that to the Building Safety Fund, including legal support.

Once the money is paid, Cladding Consulting will handle the entire sum, where we retain it in client trust accounts, pay it out and account for it on a regular basis with regular reports. Contractors are paid once a payment certificate has been issued by the surveyors. We have robust structures in place so that we can carefully manage the money and ensure contractors and other parties are paid accordingly.

Applicants are provided access to a secure online portal where they can view documentation in real time for complete transparency. Through regular video calls, we keep applicants up to date on progress, with all meetings minuted and shared on the portal.

On completion, we hand over an electronic file containing all the drawings, warranties, plans, consents and any other documentation relating to the project. Minutes for all meetings are also shared on the portal.

Whilst we manage everything on behalf of the applicant, we ensure that direct contracts are signed between them and all the individual parties involved, so that they have direct access to the collateral warranties once the project is finalised.

Leaseholders are protected from contributing to any costs relating to cladding, so the Cladding Remediation Fund will cover our fee. There aren’t any other upfront costs as we can also apply for pre-tender support where needed. This is a fund designed to give applicants the funds they need to get all the relevant experts on board. These costs can quickly add up and the earlier pre-tender support is applied for, the better. There is no risk to you, and with our expertise and extensive experience, the chance of a favourable outcome is maximised.

A number of the UK’s largest house builders have pledged to do the right thing by leaseholders, by taking responsibility for all the necessary work required to address fire safety defects on buildings of 11 metres and over that they had a role in developing or refurbishing over the past 30 years. Cladding Consulting will assist and advise on the entire process.

If you are applying to the cladding remediation fund through Cladding Consulting, you can leave all of this detail to us, and we will ensure that the appropriate process is followed. If you are entering into negotiations with a developer under the Developer Pledge, we can help you by appraising your agreement via our highly specialised contract lawyers who have specific experience in this area. Give us a call and we’ll happily talk through your case and any concerns and/or questions you have.