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

Technical Support Officer - Harlow District Council

Essex County Council
Up to £150.0000 per day
Technical Support Officer - Harlow District Council Location, HarlowFull time, Temporary - 37.5 Hours per week12 Month Contract £116.96 PAYE / £150.00 England, Essex, Harlow
Recuriter: Essex County Council

Parking Services Manager - Harlow District Council

Essex County Council
Up to £15.0000 per hour
Parking Services Manager - Harlow District Council Location, HarlowFull time, Temporary 6Month Contract £15.00 PAYE / £19.21 Umbrella Closing Date
Recuriter: Essex County Council

Customer Advice and Support Worker

Middlesbrough Council
£27,274
We have an exciting role on offer within our Housing Solutions Service as a Customer Advice and Support Worker. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Reablement Officer

Middlesbrough Council
£28,153 - £29,071 pro rata
We have an exciting role on offer within our Prevention and Partnership Service as a Reablement Officer. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council
Linkedin Banner