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

Team Manager

North Yorkshire Council
£51,356 - £55,539 per annum
Here at North Yorkshire Council, we are extremely proud of our Children’s Services, rated Outstanding across all areas by Ofsted. Scarborough, North Yorkshire / Hybrid
Recuriter: North Yorkshire Council

Premises Assistant

Essex County Council
Up to £25959.00 per annum
Premises AssistantPermanent, Full Time£25,959 per annumLocation
Recuriter: Essex County Council

Occupational Therapist - Adult Social Care

Essex County Council
£38487 - £51834 per annum
Register your interest here to be notified of upcoming Occupational Therapist opportunities within Essex County Council's Adult Social Care services. England, Essex, Chelmsford
Recuriter: Essex County Council

Director of Public Health, Wellbeing and Communities

Bristol City Council
£119,124 - £139,124 | Permanent
Bristol is a city like no other - vibrant, diverse and full of opportunity. Bristol
Recuriter: Bristol City Council

Parks & Countryside Support Officer

Essex County Council
£30599.83 - £32489.41 per annum
Maldon District Council is working in partnership with Essex Shared Services to support the role of Parks and Countryside Support Officer, a full-tim England, Essex, Maldon
Recuriter: Essex County Council
Linkedin Banner