Lib Dem/Tory-run Southwark Council are offering the displaced tenants and leaseholders of Lakanal House money – but with strings attached. While tenants will be offered £4700 for the loss of their home the money will be raided for any outstanding rent, council tax or service charge arrears meaning that some tenants could end up with much less.

Southwark Labour councillors are also concerned that the proposals appear to suggest that tenants must have accepted an offer of alternative accommodation before they get the money. Some tenants have been offered more expensive or inferior housing and are still holding out for a better option.

Southwark Labour housing spokesman Cllr Ian Wingfield said:

“Just because a tenant is in arrears it doesn’t mean that they don’t need money to help them through this difficult time. Their lives have been turned upside down as much as anyone’s and, if anything, they’re even more likely to be struggling for money at the moment. We’re not arguing that arrears should be written off entirely, just that the council should be aware how difficult things are at the moment and be flexible by allowing them to be paid off over a period of time.

“I’m also concerned that the terms of the compensation appear to put undue pressure on tenants to accept more expensive or inferior housing from the council. By withholding the compensation until tenants accept an offer the council will be presenting some people in desperate need with a decision that they should never have to make, between a home they like and can afford and the compensation they deserve. It’s not good enough to say that they’ll be able to bid for another property at some point in the future.”