In a report published today, the PAC said the government still does not know how many buildings have dangerous cladding, how much it will cost to address, or how long it will take.

Highlighting the “unacceptable toll” being exacted on people in affected buildings, the PAC said it was “left appalled at the continuing emotional and financial impact of the crisis”, which may have affected as many as three million people.

Evidence to the inquiry found far too many people still feeling trapped in unsafe homes, facing financial uncertainty and unable to sell their homes and move on. Disputes over safety still delay work starting, with the government’s promise of a formal dispute resolution process yet to materialise; and there is a risk that residents in affected buildings face exorbitant insurance premiums long-term, a risk that the government is not doing enough to manage.

The committee’s report challenges the government on how effectively it is putting residents at the heart of its remediation efforts, and asks it to consider what more it can do to help bring down insurance premiums for residents awaiting work to start.

The government published a plan at the end of last year, with a target to complete remediation on all buildings over 18m, with at least a completion date for all buildings over 11m, by 2029 – twelve years after the Grenfell fire. The PAC shares campaigners’ concerns that the plan, which will rely in part on new legislation, is both insufficiently ambitious and at risk of not delivering what is promised.

Up to 7,000 unsafe buildings are yet to be identified, and the government has yet to find a way to secure financial contributions from manufacturers of dangerous cladding. The report also warns of insufficient capacity and skills across regulators, local authorities and the construction sector which risk undermining the plan – a risk about which the government appears complacent.

The PAC is seeking a clear update from the government on what is being done to address the gaps between its plan, and what will be required to deliver it.

The report further highlights the potential impact of remediation plans on housebuilding overall. It said the government is not taking seriously enough the risk that paying for remediation diverts social housing providers’ resources away from building new housing, and told the PAC’s inquiry that it expects the impact of its policies to be small. Housing associations in London reported a 90% drop in social housing starts over the last year. The PAC is seeking a formal impact assessment of cladding remediation policy on housebuilding from the government by the end of the year.

Finally, the report finds that half a million pounds was lost to suspected fraud when taxpayer protections were relaxed to get money out to projects quickly under the Building Safety Fund. The PAC recommends that the government strengthen its counter-fraud controls and ensure they are adequate to meet accelerated funding demand.

Sir Geoffrey Clifton-Brown MP, chair of the Committee, said: “The Grenfell Tower fire will forever be a badge of shame for the nation. Residents were let down by failings at every level. A community was traumatised, and 72 lives were lost. Rightly, all in positions of responsibility have vowed to do everything in our power to prevent such a disaster ever happening again. But eight years after Grenfell, it is still not known how many buildings out there have dangerous cladding, and when it will be removed. That vow remains unkept for every day that is still the case.

“As a chartered surveyor, I take a deep personal interest in building safety. I was utterly appalled by the evidence given to our inquiry, showing residents still mired in the national cladding crisis, with no immediate solutions at hand. Leaseholders with modest financial means can often be left with potentially large financial liabilities, effectively rendering their property unsaleable. There are two main reasons for this – one, the non-cladding defects in buildings, and two, where leaseholders also have a share in the freehold. That crisis shows signs of having a chilling effect on housebuilding overall, with social housing providers forced to divert resources to remediation rather than badly needed new homes. Despite longstanding promises to make industry pay, government has yet to find a way to secure this outcome.

“It would have course been the Committee’s wish that this report carried better news for all affected. Unfortunately, we are united with campaigners in deeply regrettable scepticism that current remediation plans are capable of delivering on what’s promised. We would therefore urge government to look to the recommendations in our report, to help close the gap between their current plans, and the reality on the ground.”