Launch of the Cladding Safety Scheme

The Cladding Safety Scheme (“CSS”), launched on 25 July 2023, aims at meeting the cost of addressing life-safety fire risks associated with cladding on residential buildings over 11m in height. It forms part of the government’s portfolio of building remediation schemes, the objective of which is ensuring residents are safe from fire safety risks.

The CSS, initially launched by way of pilot scheme in November 2022 as the ‘Medium-Rise Scheme’, will offer funding to cover the reasonable costs of works associated with the remediation of life-safety fire risks. The fund is available where the buildings meet the eligibility criteria and the applicants meet the Responsible Entity criteria, and only where the developer and the Responsible Entity are unable to fund the works.

The CSS will cover a range of direct project costs including, for example, removal and replacement of cladding, mitigation such as sprinkler systems, access such as scaffolding, labour, and professional team fees. What is considered to be ‘reasonable’ costs of the same will be informed by industry standard. The CSS will not, however, cover general decoration, renewal or maintenance. The fund will also not fund other fire safety works which are not considered life-safety fire risks.

The CSS will be administered, and funding granted, by Homes England.

Eligibility Criteria 

The fund is available for buildings which are over 11m in height outside of London, and between 11m – 18m within London, when measured in accordance with Diagram D6 of Approved Document B 2019 edition (incorporating 2020 and 2022 amendments). Eligible buildings over 18m within London will continue to be serviced by the Building Safety Fund (“BSF”).

The building must be wholly residential, or mixed-use residential and commercial developments, in either the private or social sectors. The building must also have cladding as defined in the PAS 9980:2022 guidance.  

In common with the BSF, in order to receive funding from the CSS, a Fire Risk Appraisal of External Wall construction (“FRAEW”) must be carried out based on PAS 9980:2022 methodology. The cost of the works recommended will inform how much funding is to be received from the CSS (subject to an assessment by Homes England). In circumstances where works have been carried out and completed, or commenced but are incomplete, they may be subject to funding provided they started on or after 10 January 2022 and follow the recommendations in a FRAEW.

Again, mirroring the BSF, the building which is the subject of the application for CSS funding must have at least one Qualifying Lease (i.e. a lease for a single residential dwelling within the building that: a) was granted on market terms; b) requires the property to be used exclusively for residential occupation; and c) was granted at a premium and with a term of not less than 21 years).

Responsible Entity Criteria 

Applications for the CSS can be submitted by the Responsible Entity or their representative. The Responsible Entity is the party legally responsible for the external repair and maintenance of the building, and therefore responsible for completing works to ensure the safety of the building. The Responsible Entity may therefore be:

• The building’s freeholder or head leaseholder;
• A registered provider of social housing;
• A management company; or
• A right to Manage (RTM) company. 

Where the cost of the works threatens the financial viability of a Registered Provider (“RP”), the RP may put forward a business case setting out the financial impact of fixing the building concerned. This will entitle the RP to the full cost of the works.

The applicant must demonstrate that they have taken all reasonable steps to recover the costs of works from those responsible through insurance claims, warranties or legal action where possible. Any legal costs in pursuing the same, which are not recovered through legal action, may be covered by the fund. Funding will not be awarded for buildings where the developer has agreed to fund through the Developer Pledge.

Further information on the CSS, including what is and what is not covered by the funding, can be found on the Government’s CSS overview page.

For more information, please contact Mark London, Matthew Cocklin, or Alicia Ogborn.