Cladding Safety Scheme Trust Accounts

Cladding Safety Scheme Trust Accounts offer a structured way to receive and pay out remediation funding safely and transparently. They are designed for projects where money must be applied only to agreed cladding remediation works and related professional costs. They are particularly suitable where funding is being sought from the Cladding Safety Scheme or Building Safety Fund.

Funds are paid into a dedicated account and then paid out in line with a defined monthly process. Payments follow agreed rules and evidence requirements. This allows work to progress while keeping funds ring-fenced for the project.

They are suitable for the Responsible Entity and their appointed representative where one is used. It is also suitable for developers, managing agents, RTM companies and other building owners who need a clear and auditable way to manage remediation funding.

They are also useful for project teams, including the project manager, quantity surveyor, fire engineer, lead designer and lead contractor, because payment can be managed through one controlled mechanism and made to each consultant, contractor or supplier directly.

These accounts are typically used once a remediation programme is being planned, grants/funding are being applied for, and that funding needs to be received and paid out over time. It is particularly helpful when monthly payments and monthly reporting are required, and where payments are made in arrears against certified costs.

They are also used where a project needs clear governance over procurement, contractor payments and professional fees, and where leaseholders and residents expect transparency. Equally, if the building management company is an SPV or registered in an overseas jurisdiction, use of these accounts will be of comfort to MHCLG in assessing the grant application.

Our Cladding Safety Scheme Trust Accounts are built on our longstanding Project Bank Account platform, tailored for the specific requirements of Homes England.

Remediation funding is often paid and claimed monthly and requires disciplined evidence and reporting. Delays, unclear approvals or poor record-keeping can disrupt cashflow and slow progress.

Where multiple parties are involved, there is also a practical risk. payments can become fragmented, inconsistent or difficult to audit. This is particularly sensitive in a resident-facing programme.

For Homes England, they are concerned about potentially paying funding to SPV's or overseas entities who may be at a higher risk of insolvency, as this would mean that the funds cannot be used for their intended remediation purposes.

The primary benefits are (a) trust status protecting the funds; and (b) controlled payments with approvals matrices and transparency. Funds are ring-fenced for the project and paid out only when the agreed monthly evidence and approvals are in place.

They also support stronger governance. Everyone can work to one payment process, one approval matrix and one audit trail.

Benefits for Responsible Entities and representatives

These accounts provide a single, defensible mechanism for receiving grant funding and paying the supply chain. They reduces operational and insolvency risk and help keep the project aligned with the monthly claim cycle.

They also support clear separation. Funds are kept for the remediation programme and not mixed with any other operational money whatsoever.

Benefits for contractors and consultants

These accounts improve payment certainty. Once a claim is properly evidenced and certified, payment can be processed promptly through a defined mechanism. We hold all retentions in the UK Retention Deposit Scheme, so works can proceed at pace without Contractors having to take unnecessary non-payment risks.

They reduce payment friction. Contractors and consultants know what is required for payment and when payments will be made.

Benefits for leaseholders, residents and stakeholders

These accounts support transparency. Our auditable process makes it easier to explain progress and funding use over the life of the programme. Evidence of resident and leaseholder engagement is also an ongoing requirement, and a controlled process helps manage that governance. We can provide building management with access to the portal to be able monitor progress and keep residents and leaseholders up to date.

A single building account for one remediation programme.

A programme account for multiple buildings awarded funding under a single agreement.

A split structure where certain costs (for example, contractor payments and professional fees) follow different approval paths but remain within the same controlled framework.

Yes. Approval thresholds, dual approvals, and role-based permissions can be configured to match how the Responsible Entity and project team operate.

They can also be combined with escrow-style holding for specific sums where a discrete condition is needed, but most cladding remediation funding is better handled as a managed payment flow rather than a one-off release.

In practice, all TPMA's work by separating payment from approvals rules.

These approvals may be given in advance (say, where a transaction is taking place, or a dispute has been settled, and a known amount of money needs to be paid to identified parties), or on an ad-hoc basis (where a procurement agent, house manager, interior designer, lawyer or trusted advisor is given permission to spend the paying party's funds.

A specific bank account is opened for each payment scenario, and the funds are held there until (a) a payment request is made; and (b) the approvals conditions are satisfied. Once those two conditions have been met, we carry out our compliance checks and then make the payment(s).

If those conditions are not met, the funds remain held in accordance with the account documents.

We follow the agreed approvals matrix and we do not exercise any discretion beyond ensuring that the approvals conditions have been satisfied.

Funds are received into the Trust Account. Monthly payment requests are prepared and submitted with the required evidence. Payment is made once the agreed approvals and certifications are satisfied.

This mirrors how the scheme expects projects to operate in practice. including monthly requests and certified cost reporting.

Only parties authorised under the account documents can make a payment request. This is agreed at the outset and documented clearly, together with any specific approvals that might be needed, say, for payments in excess of a specific threshold, or for payments to certain beneficiaries.

Instructions are usually tied to specific documents, such as a purchase order, pro-forma invoice, invoice, payment certificate, settlement agreement, sale and purchase agreement, court order or other legal document.

We check that the instruction matches the agreed conditions before acting.

This approach ensures that payments are controlled, predictable and not dependent on informal requests or unilateral decisions by one party.

1. Funds are paid into the TPMA.
2. Payment requests are made and approvals requirements are checked.
3. Payments are made.
4. The balance remains in the account.

This simple structure is what makes TPMA's reliable across many different use cases.

We do not provide pooled TPMA's for law firms, estate agents or other professional advisors - instead, a new account is opened for each individual client or matter - this ensures that every client's funds are in their own specific account and that we are able to carry out our required screening, monitoring and ongoing compliance requirements in respect of every individual matter.

When a professional advisor wishes to open a TPMA for their client to deposit funds with us, we onboard the paying party (the client), carry out our mandatory compliance checks, agree the account mechanics (pricing, who can make payment requests, and who can authorise them) and then open the account and provide the unique account details.

Timing depends on the complexity of the parties and the arrangement.

For straightforward structures, account opening can usually be completed within a short period (even on the same day) once information is provided.

Delays are usually caused by missing onboarding information rather than the account opening process itself.

Standard onboarding checks are required.

This includes confirming identity, ownership and control of any entities involved, and the source of funds.

We also need a clear description of the purpose of the account and those parties who will be authorised to make payment requests or authorise payment releases.

In order to open an escrow account, what is typically required is:

• Details of the parties
• Identification information
• Ownership and control details
• Source of funds information
• Summary of the underlying transactions or obligations, and a copy of the contract/agreements
• Agreed payment request and authorisation conditions

If we require any other information, we'll let you know when we give you your quote.

Accounts are funded by the party providing the funds under the agreement. Each arrangement has a uniquely addressable bank account with its own account number and sort code combination, and we are able to accept BACS/CHAPS/Faster Payments and international SWIFT payments.

Funds may be paid in a single amount or in stages, depending on the arrangement.

Once paid in, funds are ring-fenced for the agreed purpose.

We are not able to accept cryptocurrencies, cheques or cash.

Funds are released only when the agreed conditions are met.

The TPMA account opening form specifies what evidence is required and who may make payment requests or authorise releases.

When conditions are satisfied, funds are released promptly and in accordance with the agreement.

If instructions are disputed or unclear, we will not release the funds without the paying party's consent.

Instead, the funds remain held safely in the escrow account while we seek the paying party's authorisation to make the payment.

This approach protects all parties. It ensures that money is not released prematurely and that funds remain available once the position is resolved.

The Cladding Safety Scheme Trust Accounts are held on two trusts.  Firstly, we hold the money on trust for the legal owner/RTM company/management company or Representative applying for the grant funding.  This means that the funds are protected from our creditors in the case of our insolvency (NB, the funds are also segregated and safeguarded).

We also enter into the Cladding Safety Scheme Declaration of Bare Trust in favour of the Homes and Communities Agency (Homes England), so that the funds are held on trust in the event that the legal owner/RTM company/management company or Representative becomes insolvent during the works. This ensures that the funds are actually used for the works.

What happens if DOS & Co. becomes insolvent?

All TPMA funds are segregated (kept separate from our own funds), safeguarded (protected by law from our own creditors) and kept liquid and unencumbered at the Bank of England. In the event of our insolvency, we have set aside regulatory capital that will be used by our administrators to 'unwind' our affairs - this will usually involve returning the funds directly to the paying party.

Funds paid into an escrow account are held separately from the money of any other parties and separately from our own funds. They are not mixed with operational accounts.

All of our TPMA funds are held liquid and unencumbered at the Bank of England. This means that there is no counterparty risk (the bank does not lend out funds, so a 'run on the bank' is not possible).

The TPMA account is set up specifically for the purposes agreed in the TPMA Account Opening agreement. Funds can only be used in line with that agreement and cannot be applied for any other purpose.

We are regulated by the Financial Conduct Authority for the provision of payment services. This means we are required to meet regulatory standards around governance, systems, controls and the handling of client funds.

Where TPMA arrangements involve regulated payment activity, those activities are carried out within that regulatory framework.

In practical terms, this combination of regulation and contract provides structure and oversight, while still allowing arrangements to be tailored to the needs of a specific matter or project.

Third-Party Managed Payments are designed to follow agreed payment rules, not to make judgments or resolve disputes.

We do not decide whether a payment should be made beyond checking that the agreed approval conditions have been satisfied.

We do not interpret contracts, assess performance, verify the quality of goods or services, or exercise discretion over how funds are spent.

If approval conditions are not met, or if instructions fall outside the agreed rules, payments are not made and the funds remain held in accordance with the account documents.

Pricing for Third-Party Managed Payments is usually based on the complexity of the arrangement and the level of activity on the account.

This typically covers account set-up, safeguarding of funds, ongoing operation of the account, processing of payment requests, compliance checks and reporting. Where payment volumes are higher or approval structures are more complex, pricing reflects the additional administration involved.

All pricing is agreed in advance, so parties have clarity on costs before funds are paid into the account.

If a payment request does not meet the agreed approval conditions, the payment is not made. The funds remain held in the account in accordance with the account documents.

If there is uncertainty, dispute or missing information, we pause processing and seek clarification from the paying party. We do not release funds unless the agreed conditions are satisfied.

This approach ensures that errors, informal requests or unilateral instructions do not result in unintended payments.

dospay provides a specialist, escrow-first approach to managing payments neutrally and transparently. We are structured to hold and move funds strictly in accordance with agreed rules, without exercising discretion or commercial judgment.

Our digital platform provides visibility, auditability and control over payment flows, while keeping funds segregated and protected. This makes it easier for parties and advisors to manage complex payment arrangements with confidence.

Using dospay allows parties to separate payment mechanics from decision-making, reduce operational risk and avoid the need for one party or advisor to hold and control funds directly.