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Flat owners caught up in the cladding crisis say they will remain trapped in unsellable homes despite a major new scheme to help fund repairs.

The long-awaited Cladding Safety Scheme (CSS) opened this week and will provide £5bn to fix medium-rise tower blocks with flammable external walls in cases where the developer cannot be traced.

It has been billed by the government as the “biggest intervention on building safety to date” and aims to protect leaseholders from the expensive costs of remediating their properties that have emerged since the Grenfell Tower disaster.

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But Lisa Petty, who is facing a £21,000 bill, told Sky News the announcement will “have absolutely no bearing on my situation”.

The 42-year-old lives in a building in Romford, Essex, with the same type of ACM cladding blamed on the rapid spread of the deadly fire at Grenfell Tower in 2017, which killed 72 people.

Because the building is less than 11 metres in height, it does not qualify for government funding.

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Lisa said: “It’s so frustrating to hear the government say all leaseholders are blameless when they have left out a whole group of us living in buildings below 11 metres.

“The government is contradicting itself because they say if you’re under 11 metres that’s a lower risk to life so you don’t need remediation, but at the same time they have acknowledged there’s a risk because they have banned ACM cladding on (new) buildings irrespective of height.”

Read more:
The post-Grenfell cladding scandal has left me penniless and about to go bankrupt’
Grenfell Tower six years on: ‘Frustration over lack of change is turning to anger’

While ministers have repeatedly insisted buildings below this threshold are safe and remediation work is not necessary, government guidance contains no restriction on repairs being required.

Officials from the Department of Levelling Up, Communities and Housing (DLUCH) have intervened over Lisa’s case, but fire engineers are standing firm in their position the works are needed in order for the building to meet safety standards.

Lisa Petty is facing a £21,000 bill to remove Grenfell-style cladding from her home
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Lisa Petty is facing a £21,000 bill to remove Grenfell-style cladding from her home

The long-running saga resulted in the sale of Lisa’s flat collapsing and her mortgage payments rising by £450 a month – as she switched to a variable rate when she thought she would be moving.

Lisa said the problems have limited “every aspect of my life” and it feels like there’s “no end in sight”.

“I can’t begin to quantify the impact it’s had, it’s exhausting,” she said.

“I want children and I’ve thought about adoption in the past, but that’s not something I feel like I can pursue because my future and my financial stability is so dependent on this situation.

“It just feels like your life isn’t your own and you are just worried to spend any money.

“I shouldn’t be made to pay to make this building safe that I had absolutely no say in designing or signing off.”

‘Buildings will only be made half safe’

Since the Grenfell Tower fire killed 72 people in 2017, the cladding scandal has trapped thousands of flat owners in unsafe and unsellable homes – with many facing huge repair bills to fix them.

The opening of the CSS means that costs of fixing dangerous cladding for all buildings in England over 11 metres will now be covered either by government funding or by companies who built them.

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Housing developers have been told by Michael Gove to commit to repairing unsafe buildings or be banned from the market.

The DLUCH said the scheme will give “tens of thousands of residents across England a pathway to a safe home”.

But the End our Cladding Scandal (EOCS) campaign group said while welcome “there are still many hundreds of thousands of people trapped in the building safety scandal, including those in buildings under 11 metres in height”.

They added the scheme will only make buildings “half safe” because it does not cover historic non-cladding fire safety issues, like internal defects and missing cavity barriers.

The government has introduced a £10-£15k legal cap on what can be charged to fix these widespread problems, but this excludes certain leaseholders, including landlords of more than three flats.

‘We are being punished’

Patsy Sweeney, who owns three small rentals in Birmingham with her husband, feels like she is being “punished” for investing into property to self-fund her retirement.

The former insurance broker said she was “accidentally” pushed into the “non-qualifying” threshold because she had wanted to sell the flat she was living in and move to a house during the pandemic – but the cladding issues made that impossible.

“I was going round the bend, getting really desperate to get out of the flat and feeling trapped, so we took a view to rent it out and get a mortgage for the house and (months later) that was what put us over the threshold.”

The 56-year-old now faces “uncapped financially liability” for the non-cladding issues, which she fears will cost tens of thousands of pounds.

Patsy Sweeney and her husband don't qualify for  a cap on 'extortionate' non-cladding costs
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Patsy Sweeney and her husband don’t qualify for a cap on ‘extortionate’ non-cladding costs

“I can’t see any logic to it. You could have two flats that are worth £2m in some parts of London and be qualified, or you could have three in the north of England for £300,000 and be unqualified, so it seems really punitive.

“Whether I have one flat or 10 I didn’t make these buildings, so it’s irrelevant.”

Labour has urged the government to “rethink” the cap exclusion, arguing it will expose non-qualifying leaseholders to financially ruinous bills and delay remediation in the cases where they simply can’t pay.

Shadow housing minister Matthew Pennycook told Sky News: “The millions of people whose lives are on hold as a result of the building safety crisis need the government to grip and drive the national remediation effort that is required to make all buildings safe and to reconsider their damaging decision to abandon a minority of leaseholders to extortionate non-cladding remediation costs.”

‘Human cash machines’

The government has not set a timeline for when homes should be remediated under the CSS, but said thousands of buildings will benefit “over the next decade”.

For Patsy, this casts a dark shadow over her plans for a comfortable retirement.

Her future costs are unknown, but she calculates the cladding crisis has already cost her £1m in rising building insurance, service charges, mortgage rates, extra stamp duty and landlord licensing fees.

She fears she will never see the equity from the flats as the “non-qualifying” status stays with the property’s lease after it’s sold so even if the issues are fixed, “no one will ever want to buy them”.

Patsy said: “I’m not a wealthy individual. Some people might think I am because I’ve got these properties but all we did was use our savings to look after our future for when we retired and now that money is being spent on a problem caused by developers.

“We are being treated like human cash machines that took a commercial risk and are now being told to live with the consequences. How is that right?”

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Home Secretary Shabana Mahmood threatens Trump-style visa ban on three countries as part of radical asylum reforms

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Home Secretary Shabana Mahmood threatens Trump-style visa ban on three countries as part of radical asylum reforms

Home Secretary Shabana Mahmood plans to impose Trump-style visa bans on three African countries if they fail to take back illegal migrants as part of “sweeping reforms” of the UK’s immigration system.

Angola, Namibia and the Democratic Republic of Congo will face visa sanctions, blocking their tourists, VIPs and business people from travelling to Britain if they do not improve co-operation on removals.

Ms Mahmood said: “In Britain, we play by the rules. When I said there would be penalties for countries that do not take back criminals and illegal immigrants, I meant it.

“My message to foreign governments today is clear: accept the return of your citizens or lose the privilege of entering our country.”

The move was reportedly inspired by President Trump’s homeland security secretary, Kristi Noem, who has overseen the mass deportation policy in the US, according to The Times.

Ms Mahmood will address the House of Commons today to lay out “the most sweeping reforms to tackle illegal migration in modern times”, effectively since the Second World War.

Modelled on the Danish system, the aim is to make the UK less attractive for illegal immigrants and make it easier to deport them.

More on Migrant Crisis

Under the plans, the home secretary will bring forward a bill to change how article 8 of the European Convention on Human Rights (ECHR), the right to family life, is applied in migration court cases.

The Home Office has said it’s seen a rise in the use of rights-based appeals in recent years as a means of avoiding deportation.

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‘Illegal migration is creating division across UK’ – Shabana Mahmood

The changes would see only those with immediate family in the UK, such as a parent or child, being able to use article 8 in future.

The home secretary, who has been in the job for 73 days, also plans to change the law so that multiple attempts to appeal against refusals for asylum will no longer be allowed.

Furthermore, refugees would face a 20-year wait before they can apply for permanent settlement.

The Home Office said the “golden ticket” deal has seen asylum claims surge in the UK, drawing people across Europe, through safe countries, on to dangerous small boats.

Under the proposals, refugee status would become temporary and subject to regular review, with refugees removed once their home countries are deemed safe.

Housing and weekly allowances would also no longer be guaranteed.

Mahmood is new hard woman of British politics – and potential successor to Starmer


Amanda Akass

Amanda Akass

Political correspondent

@amandaakass

We’re told that Shabana Mahmood, the still new home secretary, is “a woman in a hurry”.

She’s been in the job for 73 days – and is now announcing “the most sweeping reforms to tackle illegal migration in modern times” – effectively since the Second World War.

Her language is not just tough – it’s radical. Not what you’d have expected to hear from a Labour home secretary even just a few months ago.

“Illegal migration”, she believes, “is tearing our country apart. The crisis at our borders is out of control”.

Her team argues that those never-ending images of people crossing the Channel in small boats have led to a complete loss of faith in the government’s ability to take any action at all – let alone deliver on its promises.

The political reality is that successive failures of Tory and Labour ministers have fuelled the inexorable rise of Reform.

Read more

The shake-up also envisages the introduction of safe and legal routes to the UK in a bid to cut dangerous journeys across the Channel.

A new independent body – similar to one in Denmark – is planned to fast-track the removal of dangerous criminals, and last-minute appeals would be expedited.

Ms Mahmood has denied that her plans are “racist”, instead describing them as a “moral mission”.

She said illegal immigration was causing “huge divides” in the UK, adding: “I do believe we need to act if we are to retain public consent for having an asylum system at all.”

What measures is the home secretary set to announce?

  • Refugee status will become temporary and subject to regular review – with people facing removal as soon as their home countries are deemed safe
  • Asylum seekers will face a 20-year wait before they can apply for permanent settlement
  • New safe and legal routes to be introduced for those genuinely fleeing war and persecution
  • Changes to the legal framework that will require judges to prioritise public safety over migrants’ rights to a family life – amid fears that Article 8 of the European Convention on Human Rights has been used to frustrate removals
  • Using facial age estimation technology, a form of AI ,to rapidly assess a person’s age in a bid to deter people who pretend to be children in an attempt to claim asylum
  • Capped work and study routes for refugees will also be created  

Read more:
Shabana Mahmood is the new hard woman of British politics
Here’s how the Danish migration model works

Speaking on Sunday Morning with Trevor Phillips, Ms Mahmood said she had observed how illegal migration had been “creating division across our country”.

She added: “I can see that it is polarising communities across the country. I can see that it is dividing people and making them estranged from one another. I don’t want to stand back and watch that happen in my country.”

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Govt ‘lacks empathy and understanding’ for refugees

Prime Minister Sir Keir Starmer said: “Britain has always been a fair, tolerant and compassionate country – and this government will always defend those values.

“But in a more volatile world, people need to know our borders are secure and rules are enforced. These reforms will block endless appeals, stop last-minute claims and scale up removals of those with no right to be here.”

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Anti-asylum seeker protest in East Sussex

Conservative Party leader Kemi Badenoch welcomed Ms Mahmood “finally talking seriously about tackling illegal immigration”, but called the plans “weak”.

She said: “If the home secretary actually wants to cut illegal immigration, she should take up my offer to sit down with her and work on a plan that will actually stop the boats, rather than a few weak changes that will meet the approval of Labour MPs.”

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‘Mahmood’s own MPs calling her racist’ – Zia Yusuf

Speaking earlier on Sunday, Reform UK leader Nigel Farage said: “The home secretary sounds like a Reform supporter.”

“Sadly with the Human Rights Act and ECHR membership, the changes won’t survive the courts or probably even her own backbenchers,” he added.

The Refugee Council warned that the government would accrue a cost of £872m over 10 years as a result of the need to review asylum seekers’ status to remain in the UK.

Enver Solomon, the charity’s chief executive, insisted the changes “will not deter people from making dangerous crossings, but they will unfairly prevent men, women and children from integrating into British life”.

Latest Home Office figures show 39,075 people have arrived in the UK after crossing the English Channel in small boats so far this year.

The arrivals have already passed the number for the whole of 2024 (36,816) and 2023 (29,437), but the number is below the total for 2022 (45,774).

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Shabana Mahmood is the new hard woman of British politics – and potential successor to Starmer

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Shabana Mahmood is the new hard woman of British politics - and potential successor to Starmer

We’re told that Shabana Mahmood, the still new home secretary, is “a woman in a hurry”.

She’s been in the job for 73 days – and is now announcing “the most sweeping reforms to tackle illegal migration in modern times” – effectively since the Second World War.

Politics latest: Mahmood dismisses ‘tittle-tattle’ over leadership rumours

Her language is not just tough – it’s radical. Not what you’d have expected to hear from a Labour home secretary even just a few months ago.

“Illegal migration”, she believes, “is tearing our country apart. The crisis at our borders is out of control”.

Her team argues that those never-ending images of people crossing the Channel in small boats have led to a complete loss of faith in the government’s ability to take any action at all – let alone deliver on its promises.

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‘Illegal migration is creating division across our country’.

The political reality is that successive failures of Tory and Labour ministers have fuelled the inexorable rise of Reform.

More on Migrant Crisis

But speaking to Sir Trevor Phillips on Sky News, Ms Mahmood firmly hit back at suggestions today’s announcements are pandering to a racist narrative from the far right.

“It’s not right-wing talking points or fake news or misinformation that is suggesting that we’ve got a problem,” she said.

“I know, because I have now seen this system inside out. It is a broken system. We have a genuine problem to fix. People are angry about something that is real.

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Trevor’s takeaway

“It is my job, therefore, to think of a proper solution to this very real problem, to do so in line with my values as a Labour politician, but also as a British citizen, and to have solutions that work so that I can unite a divided country.”

There are many striking elements to this.

While she’s not been in the job for all that long, her government has been in power for 16 months. Her own press release highlights that over the past full calendar year asylum claims here have gone up by 18% – compared with a drop of 13% elsewhere in the EU.

The UK, she argues, has become a “golden ticket” for asylum seekers due to “far more generous terms” than other countries in Europe.

While she politely insists that her predecessor’s policies – the one in one out deal with France, closer partnership with law enforcement across Europe – are beginning to take effect, the message is clear. No one in office before Shabana has had the stomach to grasp the nettle.

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Inside Europe’s people smuggling industry

The Home Office is determined to present their boss as the new hard woman of British politics.

In a bleak warning to those in her party who will be deeply uncomfortable with this unflinching approach, we’re told she believes this is “the last chance for decent, moderate politics”.

“If these moderate forces fail, something darker will follow…. if you don’t like this, you won’t like what follows me.”

That’s a clear reference to the anti-asylum policies of Reform and the Conservatives, who are pledging to leave the European Convention on Human Rights and deport all illegal arrivals.

Both parties have responded by effectively claiming they don’t trust Labour to deliver on this, given they believe the government has lost control of our borders and overseen a surge in asylum claims.

That much Ms Mahmood herself has already acknowledged.

It’s unusual to hear a Conservative shadow minister like Chris Philp responding to a government announcement by claiming they will support the “sensible steps” the Home Office is making.

Unsurprisingly, he went on to belittle her ideas as “very small steps” combined with “gimmicks” – but the main thrust of his critique was that Labour lacks the authority to push these kinds of measures through parliament, given the likely opposition from their own left wingers.

It’s a fair point – but the lack of fundamental disagreement highlights the threat these plans pose to her opponents.

If the government looks like it might actually succeed in bringing down the numbers – and of course that’s a colossal if – Ms Mahmood will effectively have outflanked and neutralised much of the threat from both the Tories and Reform.

That’s why she’s so keen to mention her Danish inspiration – a centre-left government which managed to see off the threat from right-wing parties through its tough approach to migration, without having to leave the ECHR.

Read more:
Migrants shopping for life jackets: Inside the route to the Channel
Here’s how the Danish migration model works

The Home Office is planning further announcements on new safe and legal routes.

But refugee charities have described the new measures as harsh, claiming they will scapegoat genuine refugees, fail to integrate them into society, and fail to function as a deterrent either.

There will surely be an almighty internal row among Labour MPs about the principle of ripping up the post-war settlement for refugees.

For a government floundering after the political chaos of the last few weeks and months, Ms Mahmood is a voice of certainty and confidence.

At a moment of such intense backroom debate over the party’s future direction, it’s hard to avoid seeing her performance this weekend as a starting pitch for the leadership.

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Bitcoin briefly erases 2025 gains as crypto bleeds over weekend

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Bitcoin briefly erases 2025 gains as crypto bleeds over weekend

Bitcoin briefly lost all of its gains this year after the crypto markets bled over the weekend, despite the US government reopening on Thursday, which was expected to provide much-needed relief to the markets.

Bitcoin (BTC) fell to a low of $93,029 on Sunday, down 25% from its all-time high in October. It started the year at $93,507.

It has since rebounded to around $94,209, CoinGecko data shows.

Investments, US Government, Donald Trump, Bitcoin ETF
Bitcoin’s price information, including the change in price since Jan. 1, 2025. Source: CoinGecko

This year was tipped to be a strong one for the crypto markets after US President Donald Trump was inaugurated on Jan. 20 and formed the most pro-crypto administration to date, which has followed through on most of his promises.

Regulatory momentum under the Trump administration has been accompanied by an explosion in corporate Bitcoin treasury adoption and more inflows into the spot Bitcoin exchange-traded funds.