by political editor Paul Francis

Government changes in benefit rules could lead to an influx of new claimants that could overwhelm areas like Thanet, place huge pressures on services and increase homelessness, a council chief has warned.

Richard Samuel, chief executive of Thanet council, said the area was likely to see many more people on low incomes and benefits move in after being forced out of more costly rented accommodation in London.

The government is to cap housing benefits to a maximum of £400 a week for a four-bed property, prompting claims it could lead to a major exodus from London to less costly areas.

Mr Samuel said the changes risked a re-run of the phenomenon of "dole-on-sea" in the 1980s, when people moved from London to places like Thanet to live in cheap bed and breakfast accommodation.

He said: "This has very strong parallels indeed. The long-term impact is that many of these people will settle. That is not a bad thing but if they bring multiple problems with them, that puts massive pressure on council services. We are already struggling to keep pace with the pressure and the concern is that we become overwhelmed by it."

"If you put more of the same [type of] population that we are already struggling to deal with, I can say with some certainty that is going to be difficult because it is difficult now."

He went on: "You make it very difficult to achieve successful regeneration because successful regeneration requires an economically active population, spending money in the area they live in. We already have double the unemployment levels for the region."

While it was too early to say whether London councils were looking to areas like Thanet to block book cheaper rented accommodation, there were already signs that private landlords were already buying up vacant property, he added.

"We are getting a sense that empty properties are being bought up. That is a double-edged sword because we like to see properties brought back into use."

There have been estimates that as many as 82,000 people in private rented accommodation could be forced out of the capital by the government’s changes.

Meanwhile, there are fears an exodus of claimants from London could increase homelessness.

Simon Nunn, south regional director of the National Housing Federation, said:

"You have the potential for the displacement of vulnerable people out of accommodation. The question then is where do they go? If London councils are using low cost private rented accommodation in Kent, that will put additional pressure on local authorities looking to house people on low incomes. Unless jobs are created quickly, then it is almost inevitable that these reforms will lead to people being evicted from their homes."