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

Enhanced Senior Social Worker

Wakefield Council
Grade 10 - Grade 11, 37 hours, Permanent
We are seeking Social Workers to join our superb Locality Services. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Streetworks Inspectors

Oxfordshire County Council
34434 - 37280
About Us Working within the Network Management Team, whose function it is to ensure that all Street working activity is appropriately managed within the boundaries of legislation and the County Council’s Permit Scheme and Lane Rental Scheme About the R Kidlington
Recuriter: Oxfordshire County Council

Maintenance Engineer

Wakefield Council
£28,598.00 - £31,537.00, Grade 6, 37 hours, Permanent
An exciting opportunity has arisen for a Maintenance Engineer to join Wakefield Equipment and Wheelchair Service. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Wheelchair Therapist

Wakefield Council
Grade 7 - Grade 9, 37 hours, Permanent
We are currently looking for a forward thinking and enthusiastic individual Wakefield, West Yorkshire
Recuriter: Wakefield Council

Financial Systems Development Officer - WMF2603e

Westmorland and Furness Council
£38,220 - £39,152
You will be joining a friendly, welcoming and supportive Finance team. Cumbria / Various
Recuriter: Westmorland and Furness Council
Linkedin Banner