Agenda item

This report outlines the proposed approach to issuing refunds to current and former Brent Council residents in relation to previous arrangements for the billing and collection of water charges.

Cabinet RESOLVED to note the content of the report and approve the following approach regarding the payment of refunds in respect of water charges:

(1)      Refunds for both current and former tenants being calculated from the contractual start dates i.e. Thames Water Utilities 2003 and Affinity Water from 2005.

(2)      Refunds for current tenants being issued to their rent accounts with those in credit able to apply for the amount to be debited to their bank accounts, and if in arrears, the refund being used to offset the arrears owed.

(3)      Refunds for former tenants being:

(i)        issued to their rent accounts where former tenants have rent arrears to offset any arrears owed to the Council;

(ii)       paid into leaseholders accounts (who were tenants at the time) if they are currently in occupation; and

(iii)      to establish a process for former tenants (with no current relationship with Brent Housing Management) to apply for a refund and ensure this was publicised with a cut-off date of two years from the point of launching the application process.

Councillor Southwood, Lead Member for Housing and Welfare Reform, introduced a report outlining the proposed approach towards issuing refunds to current and former Brent Council tenants in relation to previous arrangements for the billing and collection of water charges.

Members noted the background to the proposal, which had related to historic contractual arrangements entered in to by Brent Housing Partnership with two water companies Thames Water Utilities in 2003 and Affinity Water in 2005.  At that time it had been possible for water companies to offer Council’s and social housing landlords the opportunity to provide billing and collection services for water rates in return for a void allowance for empty properties and commission to reflect the administrative costs and transfer of risk and bad debt associated with the accounts.  As a result of a court judgement in 2016 relating to the arrangements operated by the London Borough of Southwark and a subsequent Court of Appeal decision in 2020, the Council had undertaken a review of its arrangements with both suppliers, which had been assessed as no longer fit for purpose.  Given the current legal position and associated implications (as outlined in section 3 of the report) it had been recommended that refunds in respect of water charges be offered to both current and former tenants.

Members also noted the considerations which had been taken into account in developing the refund scheme, as detailed in section 4 of the report, and proposed key milestones for implementation, as detailed in section 5 of the report.  In terms of the approach outlined, members were advised that the issues involved had related to the tariffs available and way in which discounts for voids and commission arrangements had been applied and utilised rather than any suggestion tenants had been overcharged as a result of the arrangements.

Cabinet were supportive of the approach outlined having also noted the prudent financial modelling in relation to managing the financial implications of the refund scheme on the Housing Revenue Account.  Having noted the report it was RESOLVED to approve the following approach regarding the payment of refunds in respect of water charges:

(1)      Refunds for both current and former tenants being calculated from the contractual start dates i.e. Thames Water Utilities 2003 and Affinity Water from 2005.

(2)      Refunds for current tenants being issued to their rent accounts with those in credit able to apply for the amount to be debited to their bank accounts, and if in arrears, the refund being used to offset the arrears owed.

(3)      Refunds for former tenants being:

(i)        issued to their rent accounts where former tenants have rent arrears to offset any arrears owed to the Council;

(ii)      paid into leaseholders accounts (who were tenants at the time) if they are currently in occupation; and

(iii)     subject to a process being established for former tenants (with no current relationship with Brent Housing Management) to apply for a refund and ensure this was publicised with a cut-off date of two years from the point of launching the application process.