Martin Ford 06 May 2021

Lambeth to reimburse £27m of water bills

Lambeth to reimburse £27m of water bills image

Lambeth LBC faces a bill of up to £26.5m to reimburse residents overcharged for water bills.

The council’s decision to pay out the money follows years of legal wrangling over agreements under which local authorities collected charges on behalf of Thames Water.

Lambeth retained a proportion of the charges, which were agreed by the water company, and, in return, was responsible for pursuing tenants for non-payment.

Officers believe Thames Water has 70 ‘broadly similar’ contracts with other London boroughs, district councils and housing associations.

However, the High Court has ruled that, under such arrangements, councils should be classed as a ‘reseller’ and not an agent, and therefore households legally should have received discounts on their bills.

A court of appeal test case was dismissed in October 2020 and Lambeth’s legal experts have concluded ‘further pursuing the test case at the Supreme Court would not result in success’.

The council is facing costs of almost £18m to reimburse current tenants and up to £8.6m for former tenants, although it expects actual costs to be less in the latter case.

It has £22m of reserves put aside to cover the reimbursement.

The agreement between Lambeth and Thames Water was terminated in March 2020.

In a report, officers concluded: ‘With hindsight, this means that the council’s arrangements with Thames Water were poor from a commercial perspective because it has taken on the debt collection administration and bad debt risk associated with the water charges without any consideration in return.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Democratic Services Officer - Tendring District Council

Essex County Council
Up to £18.3900 per hour
Democratic Services Officer - Tendring District Council Tendring, Essex 37 Hours per Week, 4 Weeks Contract* £18.39 PAYE / £23.71 Umbrella Closing Dat England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Lawyer

Durham County Council
£48,738 to £53,051 p.a. (Grade 13)
Are you looking to progress your legal career in child protection work? If so, we are seeking a Lawyer to join our Children’s Social Care Team within Durham
Recuriter: Durham County Council

Receptionist

Durham County Council
£26,016 - £26,847
Wellbeing Sport and Leisure Servies are looking for Receptionists to join their team at
Recuriter: Durham County Council

Caretaker

Durham County Council
£25, 614 (pro rata)
Permanent Contract - Part Time- 27 hours per week - Split shift 6.00am – 8.00am and 2.30pm – 6pm (Mon-Thur) 6.00am – 8.00am and 2.30pm – 5.30pm (Fri) Seaham
Recuriter: Durham County Council
Linkedin Banner