People who lost their homes when a tower block in Dagenham burned down say they are being made to pay for the building’s fire safety works after the government demanded its money back.
Former leaseholders of the Spectrum Building, a seven-storey block of flats that was demolished after a major fire in August 2024, said it was “absolutely outrageous” the Greater London Authority (GLA) was seeking to reclaim £6m for the safety works because the blaze meant they were never completed.
On a visit to the site at the time, the then deputy prime minister, Angela Rayner, said progress on remediation work had been too slow, adding: “We’ve got to do this very quickly, because these are people’s homes and people deserve to feel safe in their own home.”
Since the freeholder of the building, Arinium Ltd, went into administration last year, the leaseholders of the 60 flats said the money would be coming out of their pockets.
Sarah Williams, who lost her home in the fire, said: “When you have the former secretary of state, the day after the fire, standing in front of the smouldering building promising to do everything she can for the residents of that building, and then 18 months later, officials saying ‘actually we need the money back’, that’s outrageous. It’s absolutely outrageous.”
Work was under way to remove dangerous cladding at the time of the fire, which led to more than 80 people becoming homeless. An investigation found the scaffolding around the building at the time had caused the fire to spread.
The money for the remediation project was provided by the government through the Building Safety Fund – administered by the GLA – with a clause stating that if the work was not completed, the money would have to be repaid.
“We’re not saying they need to change that policy, but this is an exceptional case. They will not have to pay again for Spectrum’s cladding to be remediated because the building does not exist,” said Williams.
Arinium collapsed in December last year, so the GLA is seeking to reclaim the money through the insolvency process, money that would otherwise be distributed to leaseholders. Some said they might not be left with enough money to pay off their mortgage.
“I’ve lost absolutely everything. I’m still paying my mortgage for a flat that doesn’t exist. The only thing I’m going to get back is whatever is left in the remnants of that terrible company,” said Williams. “So if they try and claim millions of pounds from that, it comes directly from the pockets of leaseholders.
“If they continue to make a claim on the assets of that company, I probably will not be able to afford to buy a home. It will affect my whole future, my pension, absolutely everything. It will ruin me.”
A spokesperson for the GLA said: “It’s vital that the Spectrum leaseholders are fairly compensated for the losses they have suffered and it is the responsibility of the administrators to ensure funds received from the insurance claim are properly allocated.”
It is understood the GLA has informed the administrators of its interest as a potential creditor and believes reclaiming the money is best value for money for the taxpayer.
A spokesperson for the Ministry of Housing, Communities and Local Government said: “Former residents of Spectrum building must be fairly and properly compensated for their losses, and it is for the administrator to make sure that they get any money they are rightfully owed.
“Our interest is getting back taxpayers’ money that was not used for its intended purpose – and this does not supersede the interests of the residents. We will make sure that any money we may be entitled to does not limit what the residents receive.”
