By Ashley Young-
Brent Council have agreed to pay up to £7.2 million in water bill refunds to tenants, after charging them the full amount, despite receiving a discount from suppliers.
The overcharge of tenants led to multiple complaints by households who were having to fork out extra costs in the face of hardship caused by the pandemic, even though the council had been subsidised, and expected to not apply
Brent Council’s cabinet today agreed to pay those living in council housing between 2003 and 2021 who lost out under the scheme – with the average amount expected to be more than £450.
The council agreed to making the payments after threats of legal action, after it came to light that it had entered an agreement with Thames Water Utilities and Affinity Water that allowed it to purchase water for its properties at a discounted rate before placing a full commission on tenants’ bills.
The average individual payout anticipated to be around £466.
A report presented to the council’s cabinet explained those using Thames Water between 2003 and 2017 would be entitled to a refund, while those under Affinity between 2005 and 2021 would also benefit.
Payments to current tenants will be placed in their rent accounts – if they are in credit, this can be transferred to a bank account – while former eligible tenants can seek a refund within the two-year application period set by the council.
Cllr Eleanor Southwood (Lab, Queens Park), who is responsible for housing and welfare reform at Brent Council, said there was “no suggestion” residents had been “overcharged”.
However, since they did not benefit directly from the arrangement, she acknowledged it needed “sorting out”.
Cllr Muhammed Butt (Lab, Tokyngton), leader of Brent Council, said the compensation will be made as a matter of urgency, and that tenants would begin to receive payments with immediate effect.
The report explained the problem was originally addressed in relation to Thames Water in 2017, which explains that refund cut-off date, where the council introduced a variation to its contract to mitigate any additional costs for tenants.
Some councils in the UK are believed to cut corners when it comes to budgets, in order to save money, and allegations have been made that a number of council officials pocket a lot of cash provided from government funding for their own personal benefit, striking internal deals at the expense of the purpose for which it is intended.
The huge cash payout is expected to be a dent in the cash flow of Brent Councils, but some critics say it would be a drop in the ocean for council fat cats, who will only need to contribute a fraction of their