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 Work Assistant

Durham County Council
Grade 6 £28,142 - £31,022
We are looking to appoint a Social Work Assistant to work within the Easington Locality.   The team provides an effective and efficient Assessment and Durham
Recuriter: Durham County Council

Social Worker For People with Dual Sensory Loss

Durham County Council
Grade 9 - Pre Progression (£35,412 - £39,152) - Grade 11 - Post Progression (£40,777 - £45,091)
Do you have experience of working with people who have dual sensory loss?  Are you a Social Worker or a Visual Impaired Rehabilitation Worker?   We ha Durham
Recuriter: Durham County Council

Community Wellbeing Assistant

Durham County Council
£26,403 - £28,598
Temporary until March 2028 - 30 hour post  Wellbing Sport and Leisure are looking for a Wellbeing Assistant to join their team in the East and West o Durham
Recuriter: Durham County Council

School Administrator

Durham County Council
£26,403- £28,598 (Pro Rata)
School Administrator Grade 5, £26,403- £28,598 (Pro Rata) Permanent- Full Time- 37 hours per week. Required to start 1st September 2026, pending DBS c Durham
Recuriter: Durham County Council

Residential Workers

Durham County Council
Grade 7 £30,024 - £33,699
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council
Linkedin Banner