Appendix B:
Authority background

Thanet District Council benefits section background

The main council offices for Thanet are situated in Margate. There are also 2 district offices providing an enquiry counter service, giving information about council services, tourism and HB and CTB.

Thanet has centralised the administration of HB and CTB in a building across the road from the main council offices in Margate. The enquiry counter is in the main council offices building, which is well served by public transport and has easy access to car parking.

The benefits section is spread over 4 floors of the building in which it is accommodated. Although some improvements have recently been made, we consider the size and the poor nature of the accommodation are imposing constraints on the effectiveness and efficiency of the delivery of the HB and CTB service in Thanet.

Currently, Thanet employs 59 staff (inclusive of management grades) to administer HB and CTB.

The benefits section in Thanet forms part of the Revenue and Benefits Division of the Finance Department. The Director of Finance and Deputy Chief Executive is the LA’s section 151 officer and as such is responsible for the LA’s statement of accounts in compliance with the CIPFA code of practice on LA accounting.

Social and economic infrastructure and deprivation

The DETR compiles social and economic indices to assess the social and economic conditions of residents in each LA. Out of 357 English and Welsh authorities, Thanet is ranked as the 64th most socially deprived.

Overall, Thanet’s higher level of economic deprivation, in comparison to other English and Welsh authorities, is due in part to its location and relative inaccessibility. Thanet has had some success in obtaining grants to the area, aimed at improving the transport infrastructure and communications. In the past 3 years, 3 business parks have been constructed and new companies attracted to the area.

Thanet’s population has a much higher proportion of long-term unemployed than national average. However, in line with national trends, the level of unemployment in Thanet is falling. In the period May 1996 to May 1998 there was an average reduction of 34.5% in the number of unemployed persons in the Thanet area. Despite this downward trend Thanet is still third from the bottom in the English ‘travel to work’ statistics (behind Hartlepool and Liverpool).

Thanet has all the usual problems of seaside towns, including readily available multi-occupancy accommodation, which attracts people from other areas.

Thanet’s close proximity to the Channel ports and mainland Europe means that it receives a large number of asylum seekers and refugees. In addition to this, the RAP has developed strong links with landlords in the Thanet area and has for some time been housing refugees arriving in Thanet from Heathrow and other ports of entry.

Funding

Thanet has an overall annual expenditure of approximately £71 million. Approximately £45 million (65%) is spent on payments of HB and CTB, of which approximately £37 million is spent on HB payments.

Administration costs

The average HB and CTB administration cost per claimant for Thanet in 1996/97 was £65.68, while the GB average was £78.70. The figures for Thanet's administration costs have fallen considerably since 1993/94.

Housing mix

In 1995/96 there were 56,018 domestic properties in Thanet. (Source: CIPFA Local government comparative statistics 1996). Thanet District Council has a very small housing stock of 3,743. Lost rental income in 1996/97 (rent arrears) was £327,529 (including HB overpayments) with 82 void properties.

There are a number of HAs providing accommodation in the Thanet area. The main provider is TCHA. Thanet's benefits manager reports there is a growing base of private sector landlords (other than HAs) in the area and an equally growing number of asylum seekers, although these appear in the main to be short-term residents.

Benefits caseload

In 1996/97, Thanet had 2,888 RR claimants and 10,252 RA claimants. 16,388 claimants were receiving CTB. The proportion of council tenants in receipt of RR has remained at approximately 75% throughout.