The latest Grenfell debate: update on the House of Lord’s examination of the Phase 2 Report

Over seven years have passed since the Grenfell Tower fire. In September 2024, the Inquiry Panel issued its Phase 2 Report into the circumstances and causes of the tragedy. The Report indicated failures by the Government and the construction industry in the years preceding the fire and its immediate aftermath. The House of Lords recently convened to pay tribute to those affected, discuss the Public Inquiry’s findings and recommendations, and reaffirm a commitment to ensuring that lessons are learned.

Background

On 22 November 2024, the House of Lords debated the Report as part of the Government’s efforts to prevent a similar tragedy in the future[1]. The Report’s findings revealed various shortcomings in competence, professionalism, oversight, integrity, and in some cases, honesty amongst those deemed responsible for ensuring the safety of people inside their homes. A summary of the Report’s key conclusions is available via our ‘Digesting the Grenfell Report’ hub. We also provide references to additional relevant commentary below.

The introduction to the debate and response were delivered by Lord Khan of Burnley (Labour), the Parliamentary Under-Secretary of State at the Ministry of Housing, Communities and Local Government. The discussions and questions raised across the House of Lords during the session underscored the significant interest in the Report’s findings and recommendations. This overview of the debate is primarily aimed at those working in or involved with the built environment and covers the following salient points to note.

Government criticisms

While the Report primarily addressed fire safety, it highlighted broader issues in practice and culture across the Government and industry. Significant reforms have occurred since 2017, including following the Hackitt Report, but additional work remains in the Government’s view. The need for cultural change was therefore emphasised as an immediate priority.

Lord Khan of Burnley acknowledged the criticisms directed at the state in the Report. He noted that the Prime Minister previously apologised for certain failings highlighted and had committed the Government to responding within six months. During the debate he made clear that the Government was treating the Inquiry’s findings and recommendations with appropriate seriousness and intimated that further detailed information on building a strong pathway to system reform, and information around the delivery framework and implementation communication, will follow. Lord Khan of Burnley also expressed that it is vital that the Inquiry’s recommendations are carefully considered, and that delivery is driven at pace, stating “We will not allow this important work to drift. We remain committed to tracking the performance and pace of reforms through regular assessments, data collection and analysis. We will ensure that any method of monitoring is extensive, transparent, unambiguous and accessible to the Grenfell community…” Additionally, he mentioned the Government is in the process of evaluating the recommendation concerning the creation of a single department.

In the meantime, a “disappointing lack of remorse, apology or accountability” by those deemed responsible for the failings was observed, including by many owners and developers who were seen to be “dragging their heels in now making their buildings safe”. The Government indicated that it will take steps to ensure compliance. There also appears to be an expectation for designers, housebuilders, contractors, specialists, professionals, those producing and marketing products, and those who service and manage buildings to be more proactive, since it was stated that “Every constituent part of our housing sector must act”.

The debate covered various aspects of social housing, noting that wider cultural and behavioural changes are still necessary and all residents should be heard. The Government aims to support a more accountable, resident-centred housing system by creating stronger protections for disabled or vulnerable individuals, such as using personal emergency evacuation plans (PEEPs) and implementing Awaab’s law, which will set timeframes for landlords to investigate or repair hazardous conditions. After public consultations and engagement with organisations representing individuals with disabilities, the Home Office will present proposals to enhance fire safety and evacuation for vulnerable residents in high-rise and higher-risk residential buildings, effective from 2025-26. The Government has allocated funding for such measures next year, and additional information will be available when the policy for residential PEEPs is published.

Remediation and other initiatives

Lord Khan of Burnley noted that many buildings remain unsafe. According to the latest monthly remediation statistics quoted from the Ministry of Housing, Communities and Local Government, out of the 4,834 residential buildings over 11 metres in height with unsafe cladding that the department is monitoring, 1,436 (30%) have completed remediation and 983 (20%) have started remediation. However, 2,415 buildings (50%) have not yet started remediation, indicating a need for prompt action. Other parts of the debate referenced the National Audit Office’s report, which we previously summarised here.

He announced that remediation investment, including new funding, will increase to over £1 billion in 2025-26. The pace of remediation will also be accelerated through targeted measures to be detailed soon. In addition, the Deputy Prime Minister met with mayors, regulators, and national building and safety bodies to press the urgency of this work for residents and leaseholders. The Government is due to bring forward details of future investment in social and affordable housing at the spending review. This includes plans to work with mayors and local authorities to evaluate local uses of funding. Labour has pledged to build 1.5 million houses in this Parliament and will add £500 million to the affordable homes programme to boost social and affordable housing.

The debate recognised that the supply chain of skilled professionals able to meet the sector’s demands is delicate. Good fire engineers remain in short supply and contractor capacity for remediation work may be insufficient. The Government therefore intends to address such issues in plans to be announced imminently.

Future procurement and award of contracts

According to the debate, the Cabinet Office have sent preliminary letters to companies named in the Inquiry. This was viewed as “the first step in stopping them being awarded government contracts”. We have previously issued summaries of the Report’s core conclusions on the procurement failings and contractual relationships. However, we await the impact of the Report, Government reform, and such correspondence on future procurement and contract opportunities in practice.

Definition and application of higher-risk buildings

As mentioned in the Report and during various points in the debate, there has been discussion about linking the definition of a higher-risk building to its height rather than other factors such as use or complexity. Consequently, the review of the definition used in the Building Safety Act 2022 may ultimately result in additional buildings being included within its scope and the related regulatory framework. Our earlier podcast provides more information on potential legal and regulatory reform.

For low-rise buildings identified for attention, freeholders and managing agents have been contacted to confirm the necessity and proportionality of any proposed works, and to ensure that rights to redress are fully utilised.

Building control standards

Steps taken towards improving standards include regulating the building control profession, tightening regulations and enforcement, and creating a transparent register of inspectors. Furthermore, approximately £16.5 million in government funding has been allocated to support the recruitment and training of 230 new building control surveyors, with an additional £3.5 million earmarked for supporting the upskilling of building inspectors in local authorities. The Government will continue to review the building control system to ensure that its overall objectives are achieved. For more information on the Report’s findings and recommendations related to building control professionals and functions, please refer to our previous discipline impact note here.

Construction products regulation

There were various observations in the Report and debate about manufacturers, construction products and the need for reform.  Our earlier discipline impact note (linked here) contains more details. It was stated that the Government will work with the sector and bring forward comprehensive proposals for system-wide reform of the construction products regime to give consumers confidence, and underpin supply chains and housing delivery. This will include an examination of the institutions undertaking a key role in the construction products regime, so that businesses and consumers can have confidence in products and services purchased.

The Building Safety Act created powers to introduce additional construction product regulations, including a general safety requirement and requirements for safety-critical products that will enable all construction products available on the domestic market to be regulated. We await details of the response to the Report’s recommendations, as well as further secondary legislation linked to construction products.

Ongoing investigations and potential actions

The theme of justice was raised throughout the debate and investigations reportedly continue. In addition, according to the update on progress provided in response, the Ministry of Housing, Communities and Local Government has established a recovery strategy unit to use powers in the Building Safety Act. The unit seeks to recover £72 million of leaseholder and taxpayer funds to pay for remediation work, impacting 1,200 homes. This indicates potential for further investigations or actions within the industry.

Lord Khan of Burnley also referenced that over £14 million has been provided to local authorities to support increased enforcement action against those whose buildings remain unsafe, as well as providing regulators with the powers needed to act. He stated that the building safety regulator has extensive enforcement powers and will hold to account those who are not complying with their responsibilities.

Concluding thoughts

The Inquiry’s Report and the House of Lord’s debate highlight the need for fundamental changes across the housing sector: “What happened at Grenfell Tower must never be allowed to happen again.” Since this Motion to Take Note was agreed, it will be important for those working in the construction industry to continue to monitor the Government’s plans to increase the pace of remediation, change behaviour and culture, rebuild residents’ confidence and trust, protect leaseholders from additional costs, and ensure that those responsible for the building safety issues contribute to addressing these. Such measures may directly impact the construction sector and insurers. Despite the overall criticisms outlined, however, future investments and initiatives may create new opportunities for consultants, contractors, subcontractors, and other interested parties.

• If you would like to discuss how the above issues may impact your projects or contracts, please contact Beale & Co’s specialist team (key contact details located here). For additional insights on building safety and the Grenfell Phase 2 Report, please visit our website or sign up to our upcoming webinar on 3 December 2024

[1] Grenfell Tower Inquiry Report – Hansard – UK Parliament – please note that quotations used in this update are taken from this transcript.