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

Social Worker - Children with Disabilities, West Essex

Essex County Council
Up to £0.0000 per annum
Social Worker - Children with Disabilities, West EssexPermanent, Full Time£36,124 to £51,834 per annumLocation
Recuriter: Essex County Council

Administration Officer - Braintree District Council

Essex County Council
Up to £12.7500 per hour
Administration Officer - Braintree District Council£12.75 PAYE / £16.33 Umbrella per hour Braintree, Essex Full-Time, Temporary 37 Hours Per Week Clos England, Essex, Braintree
Recuriter: Essex County Council

Social Worker - Assessment & Intervention Team, North Essex

Essex County Council
£36124.0000 - £51834.0000 per annum
Social Worker - Assessment & Intervention Team, North EssexPermanent, Part Time£36,124 to £51,834 per annum Location
Recuriter: Essex County Council

Social Worker - Assessment & Intervention Team, North Essex

Essex County Council
£36124.0000 - £51834.0000 per annum
Social Worker - Assessment & Intervention Team, North EssexPermanent, Part Time£36,124 to £51,834 per annum Location
Recuriter: Essex County Council

Social Worker Family Worker (Link Role), West Essex

Essex County Council
£38487.0000 - £51834.0000 per annum
Social Worker Family Worker (Link Role), West EssexPermanent, Full Time£38,487 to £51,834 per annumLocation
Recuriter: Essex County Council
Linkedin Banner