Using first principles calculations and atomistic thermodynamics the bulk and defect properties of orthorhombic bismuth titanate (Bi₄Ti₃O₁₂) and bismuth lanthanum titanate (Bi₃.₂₅La₀.₇₅Ti₃O₁₂) have been investigated. Heats of formation, valid chemical conditions for synthesis, lanthanum substitution energies and oxygen and bismuth vacancy formation energies have been computed. The study improves our understanding of how native point defects and substitutional impurities influence the ferroelectric properties of these layered perovskite materials. It is found that lanthanum incorporation could occur on either of the two distinct bismuth sites in the structure and that the effect of substitution is to increase the formation energy of nearby native oxygen vacancies. The results provide direct atomistic evidence over a range of chemical conditions supporting the suggestion that lanthanum incorporation reduces the oxygen vacancy concentration. Oxygen vacancies contribute to ferroelectric fatigue by interacting strongly with domain walls, and therefore a decrease in their concentration is beneficial. The conditions that favor the greatest reduction in oxygen vacancy concentration are described.