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 CIL and S106 Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
Salary From £42,081-£57,837 Depending on skills,
Job Title-Senior CIL and S106 ... Wandsworth, London, United Kingdom
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

CIL S106 Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
Salary From £38,841- £48,789 Depending on skills
Job Title- CIL and S106 Office... Wandsworth, London, United Kingdom
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Adults Social Worker - South Essex (Expression of Interest)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in South England, Essex, Basildon
Recuriter: Essex County Council

Multimedia Officer (Digital)

Durham County Council
Grade 9 £35,412 - £39,152 (pro rata)
An opportunity has arisen for a part-time Multimedia Officer (Digital) in the Communications, Marketing and Design team.   This part-time role is for Durham
Recuriter: Durham County Council

Duty Manager (WET)

Durham County Council
£31,015 - £34,811
We have an opportunity for a full-time permanent Duty Manager at Chester le Street  Leisure Centre.  WHAT IS INVOLVED? You will be responsible for th Durham
Recuriter: Durham County Council
Linkedin Banner