Council ‘threatening’ tenants with eviction notices after hiking energy prices by 350%

Council residents with communal heating systems have been threatened with eviction notices after they were unable to afford a 350 per cent increase in energy bills.

In April last year, 3,437 Lambeth council properties with heat networks – which use a communal boiler with a fixed rate for all tenants – faced the steep rise in costs, with some paying £80 a week for heating and water alone. Due to Lambeth’s long-term contract with heating providers, these will not reduce until this April.

Lambeth’s energy provider allows the local authority to buy energy from the wholesale energy market at reduced prices. But, this means the council’s energy bills are vulnerable to market fluctuations and saw a steep increase after Russia’s illegal invasion of Ukraine drove global prices to record levels.

Kirsty Oliveira, 56, who lives in China Walk, Kennington, received a notice seeking possession from the council in September, followed by a court letter on January 11. 

She said: “This is unfair and I’m so angry. People are suffering with terrible depression and anxiety thinking they’re going to be evicted.

“My neighbour is not eating to feed her child just so she won’t be left on the street.”

Ms Oliveira said she had accumulated rent arrears of more than £1,000 since the increase.

She said: “The council keep calling it rent arrears but it’s heating. If we turn the heating off we are still paying. We have no choice.”

Steven Knight, director of heating charity Heat Trust, said: “It is extremely unfortunate that heat arrears and rent arrears in Lambeth are combined in a way that seems to be leading to threats of eviction for non-payment of heating charges. We have urged the council to treat heating arrears separately.”

Aida Haile, 53, a single mother living on the estate with her son, 16, said she was “horrified” when she received an eviction notice in November, followed by a court notice in December.

She said: “Every day I’m worried about money.”

Ms Haile receives £140.50 of housing benefit each week, a carer’s allowance and child tax credit. Her rent costs £210.22 a week, with an additional £70 for hot water and heating.

She said: “Someone in the council said they looked at my benefit entitlement and I should have enough money – like she was saying ‘what are you spending money on?’.

“The council has told us from the start we wouldn’t get evicted over this. And they told a charity rep that I had been given a payment plan when I hadn’t. They’re spewing lies”

Rachel Luke, 46, is a single mother living on an estate in Brixton Hill who has also been threatened with eviction.

She said: “I’m in  £2,450 of arrears – I’ll never get back on top because it gets worse each week.

“It’s frightening, all this debt. How do I explain to my son that I don’t know if we’re going to have a roof over our heads soon?”

Despite the increase in payments for their heat networks, all three women said their system was “inefficient” and frequently breaks down. 

A spokesman from Lambeth council said: “Last year we provided an extra half a million pounds in funding for our most vulnerable tenants, who are already suffering the most from the cost-of-living crisis. 

“We understand that clearing arrears immediately or over a short period can be challenging, so we have been working with residents to create extended payment plans that align with their affordability and which can be paid over a more extended period. 

“We also have many support and advice partners and our own in-house tenancy support team to help residents where possible through this challenging period. 

 “Since the start of the cost-of-living crisis, Lambeth has directed more than £17m of support to those who need it most.” 

Pictured top: Kirsty Oliveira, manager of the community hall, and foodbank on the estate in China Walk (Picture: Kirsty Oliveira)