Croydon water charge refunds: your FAQs answered
In July, some tenants of council properties in Croydon will have received some extra money into their rent accounts.
If you were a Croydon council tenant between 1 April 2004 and 31 March 2016, you will have been charged an administration fee as part of their water charge.
In 2016, this was ruled by a court as an unfair payment. Tenants are now receiving a refund of that overcharge.
Croydon Council is writing to affected residents to tell them how much they have received. Here’s everything you need to know about the payments.
Why was I charged in the first place?
Like a lot of London councils, Croydon had an agreement with Thames Water for the supply of water to council properties.
Under this agreement, Croydon collected water charges on behalf of Thames Water. They also received an administration fee for this service. Croydon Council then added an administration fee to tenants’ water charges.
How much should I have received?
The average refund is around £500. The amount you will have received will depend on how long you were wrongly charged the administration fee.
I haven’t seen any extra money. Where is it?
Refunds were credited to rent accounts in July 2026. If you have rent arrears, your refund will be used to reduce the balance on your account.
What if my account isn’t in arrears?
The council usually retains a balance equivalent to six weeks’ rent. You can request that any credit balance in your rent account over six weeks is paid into your bank account. To ask for the money to be transferred, you need to email waterraterefunds@croydon.gov.uk. You might have to wait a while for a reply as they’re currently very busy.
What if I don’t want six weeks of credit in my rent account? Can I access the extra money?
Croydon Council keeps six weeks’ credit in your rent account to help make sure you can make future payments. This also helps protect your account if your circumstances or payments change. For this reason, you won’t be able to access any credit unless it’s more than six weeks’ rent.
If the money is transferred into my bank account, could it affect my benefits?
This will depend on your individual circumstances. If you’re concerned about how a refund could affect your benefits, contact the organisation responsible for your benefits (for example, the Department for Work and Pensions or your online Universal Credit account) for advice.
I used to be a Croydon tenant. Will I receive a refund too?
If you were a Croydon tenant between the period of overcharging (1 April 2004 to 31 March 2016), you might be eligible for a refund. You should have been contacted – but if not, you can email the council at waterraterefunds@croydon.gov.uk.
In your email, include your name, the address you lived at in Croydon, and your tenancy start and end dates.
If my tenancy started after 31 March 2016, will I be entitled to a refund?
Refunds are only available for tenants who were living in Croydon between 1 April 2004 and 31 March 2016. This covers the period when the unfair charges were made.
Can a cost recovery company help me get the money I’m entitled to?
Some people are being approached by cost recovery / claim management companies. They say they can help you get your refund.
Companies like these take a commission and can’t get you any extra money. The council has already checked and confirmed the amount each resident is due. Refunds have already been credited to those tenants’ rent accounts. You don’t need to use a cost recovery company to get your refund.
If you’ve got a housing issue and need free legal advice, we’re here to help.