Referral of the proposed Social Sector Medium and High-Rise Buildings Fire Safety Grant Fund – Large Awards Scheme by the Welsh Government

The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Welsh Government concerning its proposed Social Sector Medium and High-Rise Buildings (MHRRB) Fire Safety Grant Fund – Large Awards Scheme.

From:
Competition and Markets Authority
Published
25 March 2024
Case type:
SAU referral
Case state:
Open
Market sector:
Building and construction
Opened:
25 March 2024

Administrative timetable

Date Action
8 May 2024 SAU’s report to be published
9 April 2024 Deadline for receipt of any third-party submissions (submissions after 5pm on this date cannot be taken into account)
25 March 2024 Beginning of reporting period

Request from the Welsh Government

25 March 2024: The SAU has accepted a request for a report from the Welsh Government on the proposed Social Sector Medium and High-Rise Buildings (MHRB) Fire Safety Grant Fund – Large Awards Scheme. This request relates to a Subsidy Scheme of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of the Welsh Government’s assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the scheme provided by the Welsh Government

This scheme is designed to address fire safety issues in social housing in Medium and High Rise Residential Buildings (MHRRB). The desired outcomes from the scheme are:

  • protection of life from fire-related harm

  • remediation of affected buildings to fire safety compliance

  • restoration of public and commercial confidence in the safety and viability of social sector MHRRB housing within Wales

  • appointment of specialist contractors that can, using their expertise, increase foundational economy in this sector in Wales

The fund will support five areas:

  • cladding - Replacement of non-compliant external wall cladding, and rectification of any external wall fire safety compartmentalisation deficiencies

  • fire detection and alarm systems - Ensuring compliance with current standards, providing comprehensive coverage, and integration into the wider fire safety plan for the building(s)

  • evacuation alert systems designed to support the fire safety plan, whether this means stay put, partial or full evacuation

  • fire suppression systems - an effective and comprehensive fire suppression system is a highly effective way to reduce the risk of death and injury from fire

  • compartmentation - each apartment is considered to be a separate premises with fire resistance and/or fire-stopping measures ensuring that a fire which originates in a flat is contained until it can be extinguished, and before it can spread to other flats or common areas

This covers both the structural integrity of the walls and floors surrounding each flat, and the capability of front doors to resist the spread of fire, smoke and other combustion gasses. This also includes public area compartmentation measures such as fire/smoke stop doors preventing smoke and other combustion gasses from spreading beyond the fire zone, and certainly from spreading into evacuation routes, or between floors. Fire evacuation routes will also need comprehensive compartmentation measures to ensure they are usable by all occupants in the event of an evacuation.

Key eligibility criteria:

  • the fund is only open to Registered Social Landlords and Local Authorities

  • it will support works to remediate fire and structural safety issues within existing medium and high-rise residential buildings that are 11 metres and over in height (more than four storeys)

  • fire safety issues for the areas in scope are clearly based on an assessment of risk and measures integrated within the fire safety plan

The Social Sector Grant Fund has already committed approximately £134 million in capital funding to date since 2020. The majority of social sector grant-funded projects are under £6 million and are covered by existing Social Housing Building Safety Grant - SC10804. A small number of projects have, each due to the level of necessary intervention identified following initial “assessment of need” been identified as requiring subsidy packages of between £6-£16 million approximately. These remaining projects will be covered in the referred scheme, under the ‘Social Sector Medium and High-Rise Buildings (MHRRB) Fire Safety Grant Fund – Large Awards Scheme’, which will provide awards up to a maximum of £20 million and are considered a Service of Public Economic Interest (SPEI).

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the Welsh government’s proposed Social Sector Medium and High-Rise Buildings (MHRRB) Fire Safety Grant Fund – Large Awards Scheme, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Please send your submissions to us at: welshcladding2024sau@cma.gov.uk copying the public authority SubsidyControlUnit@gov.wales

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

  • the SAU will only take your submission into account if it can be shared with the Welsh Government. The SAU will send a copy of your submission to the Welsh Government together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the Welsh Government using the email address provided above

  • the SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance

  • for further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit

Contacts

Published 25 March 2024
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