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

Teaching Assistant

Durham County Council
£26,427 pro rata
Temporary from October 26 to August 27. Villa Real School is an all age 2 to 19 years Special School with pupils with SLD, PMLD and Autism. The Gove Consett
Recuriter: Durham County Council

Care Facilitator

Durham County Council
Grade 6 - £29,071 - £32,046
We are looking to appoint a temporary Care Facilitator to be responsible for negotiating and arranging appropriate packages of care for individual ser Spennymoor
Recuriter: Durham County Council

Senior Practitioner Access to Records

Durham County Council
Grade 12 - £45,529 - £49,817
Are you an experienced social worker looking to make a difference in a different way? Do you want to use your professional expertise, judgement and u Spennymoor
Recuriter: Durham County Council

Locality Delivery Manager (Foster with North East)

Durham County Council
Band 1 - £76,166 - £78,573 per annum
This is a rare and exciting opportunity for an experienced and ambitious leader to play a key role in shaping the future of fostering and family-based Durham
Recuriter: Durham County Council

Waking Night Residential Worker

Durham County Council
£31,015 - £34,811 plus allowances
WHAT WE DO MATTERS At Aycliffe Secure Centre what we do truly matters; we provide a caring, trauma informed and aspirational environment for young peo Newton Aycliffe
Recuriter: Durham County Council
Linkedin Banner