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

Interim Team Leader - Waste & Recycling - Uttlesford Council

Essex County Council
Up to £170.0000 per day
Interim Team Leader - Waste & Recycling Full-Time, Temporary 37 Hours per Week 3 Months Contract £170.00 PAYE / £218.025 Umbrella Daily Rate Closing D England, Essex
Recuriter: Essex County Council

Team Support Officer

Royal Borough of Greenwich
Scale 5 - £32,535 to £33,987
The right person will work closely with both Team Leaders for Self-Directed Support (Finance & Systems and Advice & Recruitment) Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Local Authority Research Practitioner

Royal Borough of Greenwich
PO4 - £49,056 to £52,194
Greenwich is a great place to work. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

SEN Team Manager

London Borough of Bromley
MG6 Circa £60-65k
London Borough of Bromley Council is working hard to do things differently in SEND Bromley (City/Town), London (Greater)
Recuriter: London Borough of Bromley

Social Worker - Children In Care

North East Lincolnshire Council
Salary from ASYE level £36,363 up to £46,142
A service built on passion, pride and togetherness North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner