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

Grounds Maintenance Apprentice

Ribble Valley Borough Council
National minimum wage for apprentices
You will work towards a Level 2 Horticulture Operative Standard qualification through Myerscough College. Clitheroe, Lancashire
Recuriter: Ribble Valley Borough Council

Property Inspection Officer

The Royal Borough of Windsor & Maidenhead
£26,895 - £30,132 per annum
We have an exciting opportunity for a Property Inspection Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Trainee Solicitor (CDC)

City Of Doncaster Council
£28,598 - £31,537
We are seeking a Trainee Solicitor who will join our busy in-house team to continue their legal training. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Social Worker/Senior Social Worker - Children in Care

Gloucestershire County Council
£39,152 - £47,181 per annum
We are currently recruiting for a Social Worker to join our dedicated Children in Care Team in Cheltenham. Cheltenham, Gloucestershire
Recuriter: Gloucestershire County Council

Family Drug and Alcohol Court Social Worker

Gloucestershire County Council
£39,152- £47,181 per annum
Gloucestershire Children's Service are looking for an FDAC Social Worker to join the Tewkesbury Children and Families team. Tewkesbury, Gloucestershire
Recuriter: Gloucestershire County Council
Linkedin Banner