Part 5: Other provisions about safety standards, etc. New Homes Ombudsman scheme Section 136: Establishment of the New Homes Ombudsman scheme Effect
This section requires the Secretary of State to arrange for there to be a redress scheme for England, Scotland, Wales and Northern Ireland, to be known as the "New Homes Ombudsman scheme", which must meet the conditions in section 137(1), including the requirements set out in Schedule 9.
	The provision gives examples of how the obligation in subsection (1) might be achieved. The scheme may be an external or "in-house" redress scheme. For example, the Secretary of State could either select a third party to establish the scheme and maintain it, or the scheme could be an "in-house" arrangement whereby the Secretary of State establishes and maintains the scheme directly or establishes the scheme and appoints another person to maintain it. This will provide flexibility for how the scheme is established and maintained, and who will deliver the New Homes Ombudsman scheme. For completeness, the examples set out in the provision also cover the Secretary of State having to make arrangements for transfer, to allow the scheme to be maintained by a different person to the person who established it. This might become necessary if the external scheme provider which established the scheme could no longer fulfil its contract.
	In line with the flexibility around how the scheme is established and maintained, this section also provides for flexibility in terms of funding the scheme. It allows the Secretary of State to provide financial assistance to the New Homes Ombudsman scheme, including through non-repayable forms (grants) as well as repayable forms of assistance (such as loans). In the alternative, if the scheme is procured and is not self-financing there is also provision to allow the Secretary of State to pay for the service. The intention is for the New Homes Ombudsman scheme to cover its own costs and to finance itself through fees charged to developers.
	Before making the arrangements for the New Homes Ombudsman scheme under this section, the Secretary of State must consult the Welsh Ministers and Scottish Ministers and the relevant Northern Ireland department. If in future, alternative arrangements are required for the New Homes Ombudsman Scheme, the Secretary of State will be required to consult with the Scottish and Welsh Ministers and the relevant Northern Ireland department again.
	The relevant Northern Ireland department is the department of the Northern Ireland Executive designated by the First Minister and deputy First Minister in Northern Ireland acting jointly, or the Executive Office in Northern Ireland, where a department has not been designated.