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

Early Help Practitioner - MASH

Oxfordshire County Council
£38220 - £40777
The Multi-Agency Safeguarding Hub (MASH) is the front door to Children’s Services at Oxfordshire County Council. The MASH-Family Help Team is a subcategory of MASH who play a vital role in providing support to children, young people, and families. This Oxford
Recuriter: Oxfordshire County Council

Town Clerk

Biggleswade Town Council
£74,454 - £89,081
Biggleswade Town Council is looking to appoint a highly motivated and forward-thinking Town Clerk, to drive its services forward. Biggleswade
Recuriter: Biggleswade Town Council

Part Time Enforcement Officer Trading Standards

Essex County Council
£26601.00 - £31295.00 per annum + + 26 Days Leave & Local Gov Pension
Part Time Enforcement Officer Trading Standards (Tobacco and Vapes)Fixed Term - 2.5 years duration, Part Time - 20 to 30 Hours Per Week, Monday to Fri England, Essex, Chelmsford
Recuriter: Essex County Council

Administration Officer (Finance) - Braintree District Council

Essex County Council
Up to £13.7900 per hour
Administration Officer (Finance) £13.79 PAYE / £17.69 Umbrella Braintree, EssexFull-Time, Temporary 3 Months Contract 37 Hours per Week Closing Date
Recuriter: Essex County Council

Enforcement Officer Trading Standards (Tobacco and Vapes)

Essex County Council
£26601.00 - £31295.00 per annum + +26 Days Leave & Local Gov Pension
Enforcement Officer Trading Standards (Tobacco and Vapes)Fixed Term - 2.5 years duration, Full Time - 37 Hours Per Week, Monday to FridayUp to £31,295 England, Essex, Chelmsford
Recuriter: Essex County Council
Linkedin Banner