Southwark council loses water payment battle

[TheArtfulDogger]

Just watching the news about Southwark council losing a court case where they agreed a reduced rate for water for council tenants with Thames water but then failed to pass the savings on, they now have to repay ?8.8 million back to the residents in question. Quite right too that they have to repay it.

Question is how will Southwark fund this refund - are we going to see increases in fines for residents of Southwark for trivial things (parking, littering and so on)

Watch the Southwark space to see what happens next ...

[uncleglen]

Typical Labour incompetence in financial matters- although judging by the North Cross Road parking fines thread they pre-empted this

[Abe_froeman]

What on earth were they thinking? I also dread to think how much this has cost taxpayers in legal fees. What a shower.

[Blah Blah]

Would that be in comparison to typical Tory incompetence in overspending in electoral campaigns and then not declaring it uncleglen?

[TheArtfulDogger]

uncleglen Wrote:

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> Typical Labour incompetence in financial matters-

> although judging by the North Cross Road parking

> fines thread they pre-empted this

Apparently it goes back to the previous administration, and carried on by the current one, therefore it's a council official thing and not a party thing (and as we all know council officials and not councillors run the local authorities despite what should be happening)

[Blah Blah]

Does anyone know what exactly the overcharging equates to in real terms for those affected. I.e how much % was the overcharge?

[DaveR]

Southwark were paid commission by Thames Water for collecting from tenants on their behalf - the amount seems to have varied between 15 and 18%. In return for this Southwark took on the cost of collection and the risk of non-payment, but it's clear that they made a significant profit overall. The arrangement started post water privatisation so from about 1990, although the case only relates to the period between 2006 and 2013, and Thames Water had or have similar arrangements with 69 local authorities and housing associations.

So it's a bit misleading to say Southwark negotiated a discount and didn't pass it on, and also a bit unfair to single out Southwark amongst all the other LAs.

[Blah Blah]

So it may open the way for challnges elsewhere. Thanks for that Dave.

[ratty]

Money paid back will come from their housing related account and I won't affect the general fund. They should be able to afford it therefore.

[uncleglen]

The Housing related account....

http://www.southwarknews.co.uk/news/southwark-council-owed-millions-in-rent-arrears-every-year/

oh dear.

[ratty]

Socially excluded tenants in rent arrears shocker? Not sure what your point is there to be honest?

[Blah Blah]

Uncle is a hoot isn't he?

Trying I think to blame Southwark for tenants getting into arrears because of DWP blunders.

[uncleglen]

How the hell did you get there from the posts above BB....The housing related account is in a bad way....so how can they afford the refunds from that?..do I have to spell it out...I suppose since a lot of you have me down as a right-wing fascist then you read into the posts and links what you have been brainwashed to think by the hard left.

Anyway there are a hard core of social tenants who do not pay rent because they know they will get away with it...and in the past courts have ruled and the tenants in arrears have to pay the arrears back 50p a week out of their benefits....this whole country is being exploited by free-loaders

[DaveR]

"I suppose since a lot of you have me down as a right-wing fascist..."

"....this whole country is being exploited by free-loaders"

I think you've proved the point quite adequately by yourself.

[PeckhamRose]

Someone I know got their cheque for their overpayment rebate and Southwark are charging a ?69 admin fee.