Council that hiked heating bills by 350% delays passing on £1m subsidy to tenants

Lambeth town hall in south London. Residents in one estate were told their annual heating and hot water charge was rising from £959 to £4,344. Photograph: Jonathan Harbourne/Alamy

A local authority that threatened tenants with eviction if they could not afford a 350% hike in energy bills has delayed crediting them with a £1m government subsidy for more than 12 months, it has emerged.

Lambeth council is facing demands to pay compensation to residents who campaigners say have been forced into poverty by its conduct.