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The government has started distributing an estimated £400 million to remove and replace unsafe aluminium composite material (ACM) cladding systems on social sector high-rise housing in England owned by social landlords.

Twelve local authorities and 31 housing associations are being told today (17 October 2018) that they have been allocated the money they need to cover the cost of removing and replacing unsafe ACM cladding from social, residential buildings they own which are 18 metres or higher.

This funding will enable local authorities and housing associations to get on with the job of making their buildings safe without having an impact on other vital services. As work is ongoing, costs are subject to change, and that is why the government will be closely monitoring progress.

Secretary of State for Communities, the Rt Hon James Brokenshire MP said:

There is nothing more important than ensuring people are safe in their homes and that is why I am pleased the £400 million funding has started to be released.

We are doing the right thing by residents and fully funding the replacement of unsafe ACM cladding in social housing buildings 18 metres or above.

In the private sector, I want to see landlords protect leaseholders from these costs. I am pleased that a number have stepped forward to do so, including Barratt Developments, Legal & General, Taylor Wimpey, Mace and Peabody. However, there are some who are not engaging in this process. If they don’t, I have ruled nothing out.

The latest figures from the Ministry of Housing, Communities and Local Government show that over 75% of social housing buildings with unsafe ACM cladding have completed remediation or are currently removing and replacing the cladding, with plans in place for the remaining 25%. Interim fire safety measures are in place in all affected buildings to keep residents safe until the cladding has been replaced.

Following the Grenfell Tower tragedy, the government established a comprehensive building safety programme that included an independent review of fire safety and building regulations.

The government published its response to this review and, following consultation, has confirmed that it is banning the use of combustible materials on all residential high-rise buildings above 18 metres so that people are safe in their homes now, and in the future. Full details of the ban and how the recommendations of the Hackitt review will be implemented will be published later this year.

Further information

Application process and distribution of funds

Applications for 159 buildings have been received to date and 135 applications have been approved in this first tranche of funding.

Twelve applications were not eligible for funding because they didn’t meet the application criteria – for example the buildings are below 18 metres, owned by commercial freeholders or the cladding is not ACM.

Twelve applications have been deferred while building owners provide further information so that we can confirm eligibility.

There is nothing more important than ensuring people are safe in their homes and so the department has taken the view that applications received after the 31 August deadline will still be reviewed.

The government is paying 80% of the estimated eligible costs up front when work starts, with the remaining 20% when the work is complete and final costs are known. The funding allocated so far comes to £248 million.

Latest building safety data

The government publishes the latest building safety data it holds on a monthly basis, showing how many buildings are in the process of removing and replacing unsafe ACM cladding.

The Competition and Markets Authority (CMA) has issued Lloyds with legal directions after it failed to send annual payment protection insurance (PPI) reviews and provided incorrect PPI data to its customers. It is now requiring Lloyds to put effective systems and procedures in place to prevent similar incidents from happening in the future.

This is not the first time Lloyds has breached the CMA’s PPI order, having reported 6 breaches in 2016 for failing to provide customers with correct data and annual reminders.

The CMA’s action comes after an investigation into PPI by the Competition Commission, concluding in 2011. One of the measures introduced was for customers to receive an annual review once a year from their provider, setting out clearly how much they had paid in and their right to cancel the policy.

The CMA decided to act against Lloyds after IT problems meant approximately 14,000 of its customers did not receive this reminder between 2012 and 2018. Lloyds also provided incorrect information on PPI premiums in annual reviews it sent to 2,884 customers.

Adam Land, the CMA’s Senior Director of Remedies, Business and Financial Analysis, said:

We are disappointed that Lloyds has again failed to provide these important reminders or provide accurate data to its customers.

These are serious breaches and, as we did with Barclays in August, we are issuing Lloyds with legal directions which can be enforced by a Court to ensure they comply.

Following a series of breaches, we’re now requiring legal assurances from Lloyds that they have measures in place to prevent similar breaches from ever happening again.

The annual PPI review is an important measure so customers know they still have a policy and how much it is costing them each year, as well as their right to cancel or switch.

Lloyds has started sending its apology letters to affected customers and has provided a reminder of their right to cancel the policy and an offer to refund premiums.

Notes to editors

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For CMA updates, follow us on Twitter, Facebook and LinkedIn.
2. Lloyds Banking Group is in breach of the Payment Protection Insurance Market Investigation Order 2011 (the PPI Order). One of the requirements of the order is that all PPI customers would receive an annual review from their provider setting out information including how much they had paid into their policy.
3. Directions are a formal enforcement instrument, which can be used to ensure that an Enterprise Act 2002 remedy imposed by the CMA, in this case the PPI Order, is complied with fully.
4. On 28 June 2018, Lloyds notified the CMA of the breaches. The CMA acknowledges the co-operation it has received from Lloyds during the course of the investigation into these breaches and the actions already taken by Lloyds.
5. The CMA does not currently have the power to impose financial penalties for breaches of this kind. The CMA has called for such powers in order to increase incentives for businesses to comply with market and merger remedies and to rectify any breaches quickly.
6. Media enquiries should be directed to 020 3738 6460 or press@cma.gov.uk

Today, the UK and its allies can expose a campaign by the GRU, the Russian military intelligence service, of indiscriminate and reckless cyber attacks targeting political institutions, businesses, media and sport.

The National Cyber Security Centre (NCSC) has identified that a number of cyber actors widely known to have been conducting cyber attacks around the world are, in fact, the GRU. These attacks have been conducted in flagrant violation of international law, have affected citizens in a large number of countries, including Russia, and have cost national economies millions of pounds.

Cyber attacks orchestrated by the GRU have attempted to undermine international sporting institution WADA, disrupt transport systems in Ukraine, and destabilise democracies and target businesses.

This campaign by the GRU shows that it is working in secret to undermine international law and international institutions.

The Foreign Secretary, Jeremy Hunt said:

These cyber attacks serve no legitimate national security interest, instead impacting the ability of people around the world to go about their daily lives free from interference, and even their ability to enjoy sport.

The GRU’s actions are reckless and indiscriminate: they try to undermine and interfere in elections in other countries; they are even prepared to damage Russian companies and Russian citizens. This pattern of behaviour demonstrates their desire to operate without regard to international law or established norms and to do so with a feeling of impunity and without consequences.

Our message is clear: together with our allies, we will expose and respond to the GRU’s attempts to undermine international stability.

Today, the UK and its allies are once again united in demonstrating that the international community will stand up against irresponsible cyber attacks by other governments and that we will work together to respond to them. The British government will continue to do whatever is necessary to keep our people safe.

Notes to editors

As the Prime Minister said in Parliament on 5 September 2018, the UK will work with our allies to shine a light on the activities of the GRU and expose their methods.

The UK’s National Cyber Security Centre assess that the GRU is almost certainly responsible for the cyber activities listed below. Given the high confidence assessment and the broader context, the UK government has made the judgement that the Russian government – the Kremlin – was responsible.

The GRU are associated with the names:

• APT 28
• Fancy Bear
• Sofacy
• Pawnstorm
• Sednit
• CyberCaliphate
• Cyber Berkut
• Voodoo Bear
• BlackEnergy Actors
• STRONTIUM
• Tsar Team
• Sandworm

Attack	NSCS Assessment
In October 2017, BadRabbit ransomware encrypted hard drives and rendered IT inoperable. This caused disruption including to the Kyiv metro, Odessa airport, Russia’s central bank and two Russian media outlets.	NCSC assess with high confidence that the GRU was almost certainly responsible.
In August 2017, confidential medical files relating to a number of international athletes were released. WADA stated publicly that this data came from a hack of its Anti-Doping Administration and Management system.	NCSC assess with high confidence that the GRU was almost certainly responsible.
In 2016, the Democratic National Committee (DNC) was hacked and documents were subsequently published online.	NCSC assess with high confidence that the GRU was almost certainly responsible.
Between July and August 2015 multiple email accounts belonging to a small UK-based TV station were accessed and content stolen.	NCSC assess with high confidence that the GRU was almost certainly responsible.

Previously attributed

Attack	NCSC Assessment
In June 2017 a destructive cyber attack targeted the Ukrainian financial, energy and government sectors but spread further affecting other European and Russian businesses.	The UK government attributed this attack to the GRU in February 2018. NCSC assess with high confidence that the GRU was almost certainly responsible.
In October 2017, VPNFILTER malware infected thousands of home and small business routers and network devices worldwide. The infection potentially allowed attackers to control infected devices, render them inoperable and intercept or block network traffic.	In April 2018, the NCSC, FBI and Department for Homeland Security issued a joint Technical Alert about this activity by Russian state-sponsored actors.

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