Thousands of leaseholders trapped by the cladding scandal will not have to pay a penny to get their properties made safe under a scheme drawn up by Michael Gove.
The Housing Secretary will unveil plans next week for a £4billion grant scheme to pay for repairs demanded by banks and insurers in the wake of the Grenfell fire.
It will directly help those living in buildings under 18 metres tall who have missed out on previous grants and been told to take out huge loans to remove dangerous cladding.
At least 116,000 flats in 7,500 blocks are expected to benefit from the plan.
The Housing Secretary will unveil plans next week for a £4billion grant scheme to pay for repairs demanded by banks and insurers in the wake of the Grenfell fire (above)
Mr Gove will warn developers that they will be expected to pay for the scheme.
They will be asked initially to make voluntary contributions but warned that they face the prospect of swingeing new levies if they refuse.
They will also be banned by law from passing on the bill to leaseholders through inflated service charges.
A Whitehall source said: 'It will take a little while to sort out but it should give people in these properties the confidence and security that the work will be done and that they will not have to borrow the money to pay for it.'
The move represents a major victory for the Daily Mail, which has campaigned for justice for the thousands of people facing huge bills to remove dangerous cladding and fix other fire risks.
Many have found they are unable to sell their homes because banks have been unwilling to offer mortgages.
The scheme, drawn up by Michael Gove, will directly help those living in buildings under 18 metres tall who have missed out on previous grants and been told to take out huge loans to remove dangerous cladding. At least 116,000 flats in 7,500 blocks are expected to benefit from the plan
Mr Gove will also announce a review of the scale of the work required, following concerns that it has been inflated.
All unsafe cladding will be removed but officials believe that the overall bill has been inflated by demands to fix other building problems that do not directly affect safety.
Ministers are understood to have reached agreement with lenders on the issue in recent weeks.
A Whitehall source said: 'We want a proportionate approach to fire safety. There has been some over-reach on buildings that are essentially safe, so we are going to look at that.'
A report by Capital Economics last year found that up to 1.3 million flats may be ineligible for a mortgage because of concerns about unsafe cladding.
People living in properties above 18 metres are already able to access Government grants from a £5billion Building Safety Fund.
But the former housing secretary Robert Jenrick had proposed a loan scheme for those living in properties standing 11-18 metres tall despite warnings it would cost £300million to administer and leave leaseholders saddled with debt for years.
Under the new proposal, people living in these buildings will also be able to access Government grants to pay for vital fire safety work.
The average post-Grenfell repair bill for properties above 18 metres is £59,000.
Those in properties with a height of 11-18 metres have faced bills averaging £27,000.
Some have faced demands for six-figure sums for remedial work, plunging many into debt and despair.
Mr Gove, who took over responsibility for the crisis after the Government reshuffle in September, had already indicated he was unhappy with the idea that 'innocent' leaseholders should have to pay for building defects.
He told MPs last year: 'I'm still unhappy with the principle of
