Southwark Council paid ‘unprecedented’ levels of compensation to disgruntled residents last year, data has revealed.
Money paid to residents increased by 133 per cent last year, from £10,091 in 2021/22 to £23,555 in 2022/23, according to the Housing Ombudsman’s statistics.
Southwark Liberal Democrat Housing Spokesperson Cllr Emily Tester said: “This unprecedented amount of money being paid in compensation shows clearly how people across inner London are being failed by their Labour councils and the Conservative government.”
The Housing Ombudsman is the government watchdog responsible for ordering compensation payments when landlords fail to fulfil their duties to tenants.
Its data found that the maladministration rate in Southwark more than doubled from 37 to 77 per cent between 2021/22 and 2022/23.
The Housing Ombudsman has already found multiple cases of severe maladministration from Southwark Council this year.
In July, Southwark paid compensation to a resident who was refused mutual exchange after it unfairly accused him of vandalising his own kitchen, one of several maladministration cases.
Cllr Tester added: “By failing residents and having to pay compensation, Southwark is worsening its already precarious financial situation and affecting its ability to deliver vital services that people need.”
In total, inner London councils were ordered to pay £180,676 in compensation between April 2022 and March 2023, an increase of 147 per cent on the previous year.
Cllr Darren Merrill, the cabinet member for housing, said: “If we fail even one of our residents, it is not good enough, and we know that we need to work harder to make our services of the highest standard.
“We have put in place a wide range of service improvements, and with time, we will see positive change. As one of the country’s largest inner-city landlords, we have more than our share of issues to manage, operating in the same challenging economic circumstances faced by councils across England.
“We know that change is needed, not just in what we do, but in how councils are financially supported by the Government to ensure we can do the best for our residents.”