Appendix B:
Authority Background

Background

Richmond is one of 32 London boroughs. The borough is situated in south-west London and incorporates Richmond, Twickenham, Sheen, Kew, Ham and Barnes.

Unemployment

Figures from the House of Commons Library indicate that Richmond has an unemployment rate of approximately 2.5%. This compares with a national figure for unemployment of 4.7% (as at November 1998).

Deprivation

Despite a widespread image of prosperity in the borough, figures supplied by the Department of the Environment, Transport and the Regions (DETR) in its analysis of local government grant distribution indicate that Richmond has a higher level of social deprivation than the average for LAs in England. These deprivation figures are based on factors such as:

• unemployment
• overcrowding
• types of accommodation
• rates of mortality
• the proportion of lone parents
• homelessness.

A comparison of the social deprivation indicator with that of other outer London boroughs reveals that Richmond is less deprived than many of its neighbours.

In spite of indicators pointing towards social deprivation in the area, economic deprivation figures indicate that Richmond is more prosperous than the average LA in England or outer London.

Source: DETR
Note – higher or less negative figures indicate greater levels of deprivation.

Benefits caseload

During 1997/98 Richmond paid out over £35 million in HB and CTB. Rent allowance accounted for about 48% of all benefit paid during 1997/98, with high levels of benefit reflecting high local rents.

Source: Richmond

Trends in benefit

Over the past few years there has been a fall in the number of people claiming HB and CTB in Richmond, reflecting a fall in the level of unemployment in the area.

Source: Richmond

Benefit administration

Richmond currently employs approximately 30 full-time equivalent members of staff to administer benefits. The average cost of administering benefit was £115.88 per case during 1996/97, well above the reported GB average of £78.70 during the same period. In April 1998 Richmond restructured its Revenues and Benefits division with the aim of reducing the cost of administering benefit. This resulted in a reduction of approximately 33% in the number of benefit administration staff, which reduced the cost of benefit delivery. Richmond told us that estimated costs per claim are likely to fall by at least 5% in 1998/99 and further reductions are likely in 1999/2000. However, officers accept that this has had some impact on the quality of service the LA provides to claimants.

Source: DSS

Richmond reports a 93% performance on rent allowance new claims and a 91% performance on rent rebate new claims in 1998/99, according to its draft statistics.

Counter-fraud activities

Richmond currently employs the equivalent of fewer than 3 full-time fraud officers, who have responsibility for the investigation of potentially fraudulent claims for HB and CTB.

The level of fraud that Richmond claims to have detected as measured by WBS has increased since 1996.

Source: Richmond

Richmond reports that it generates WBS in excess of the targets set by DSS.
In 1997/98 Richmond’s target was £427,000 and Richmond reported that it achieved over £1 million, earning over £200,000 in additional subsidy.