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

Peer Educator

Essex County Council
Up to £20.00 per hour
Peer EducatorTemporary, Part Time£20 per hourLocation
Recuriter: Essex County Council

Medical Passenger Assistant

North Yorkshire Council
£28,153 – £30,023 pro rata per annum
We are looking for caring, flexible and committed people to support a client on journeys to and from activities at various centres Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Swimming Teacher

North Yorkshire Council
£16.89 to £18.44 per hour
We are currently seeking Swim Teachers at Northallerton Leisure & Wellbeing Hub Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Registered Children’s Home Manager

North Yorkshire Council
£53,051 - £57,372 (plus up to 10% welcome payment, plus relocation support up to £8,000)
We are seeking an experienced, dynamic and motivated Residential Manager to lead the No Wrong Door Hub Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner