Housing Ombudsman data revealed that inner-London councils were order to pay £180,676 in compensation in between April 2022 and March 2023, an increase of 147% from the previous year.
Over quarter of a million was paid out by councils across London in 2022/23, despite compensation figures only available for 26 of the 32 London boroughs.
Compensation paid by Southwark Council to residents increased by 133%, paying out £23,555 in 2022/23 compared to £10,091 in 2021/22.
The largest increase was seen in Lewisham with compensation payments going from around just £1,000 to over £30,000 – a staggering increase of over 2400%.
The rate of maladministration findings from the Housing Ombudsman has also worsened for inner-London boroughs, increasing by almost a third from 44% in 21/22 to 60% in 22/23.
The maladministration rate in Southwark more than doubled from 37% to 77%, the highest increase of any inner-London borough.
The Housing Ombudsman investigates complaints made by tenants and leaseholders about their landlord (often local authorities) and has the power to compel the landlord to pay compensation to the resident if there is a finding of maladministration.
The Housing Ombudsman has already found multiple cases of severe maladministration from Southwark Council this year.
In May, the Housing Ombudsman ordered Southwark pay £10,000 to two young families for failing to resolve long-running heating and damp and mould issues.
More recently, Southwark paid compensation to a resident who was refused mutual exchange after the council accused him of vandilising his own kitchen, despite the kitchen cupboards being removed by the council.
Commenting, 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.
Here in Southwark, the Housing Ombudsman has had to step in over and over again to help council tenants and leaseholders. The amount of money that Labour-run Southwark is having to pay out is a clear indication that the Council is failing to provide good quality homes for residents. 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 Southwark, across London and across the country people need a party who have a plan to take control of housing. The Liberal Democrat’s new deal for housing can deliver that.”
Cllr Victor Chamberlain, leader of the Southwark Liberal Democrats, said:
“Southwark Labour has presided over a disgraceful collapse of the council’s repairs service. These failings are putting vulnerable people at risk and draining yet more resources from an already stretched budget that we need for vital services. Housing and repairs in Southwark needs a root and branch review if the council is to ensure everyone in the borough has safe, good quality housing.”
