A CONSULTATION exercise is to be held over controversial changes to the council tax benefit system, which opponents say will hit the poorest people hardest.

The Government plans to replace the current system next year, with the responsibility for running the revamped set-up passing into the hands of local authorities.

Councils will receive grants to fund the new system, but there will be a cut of between ten and 12 per cent on projected spending levels.

Although some groups of claimants - including pensioners - will be shielded reductions in their benefits, some could face drastic cuts in their income.

Darlington Borough Council needs to design a new council tax benefit scheme by January, in time for 2013/14 billing and the council’s cabinet debated the issue at a meeting last night.

There are about 12,000 recipients of council tax benefit in Darlington, more than half of whom are of working age.

The council is faced with the decision of whether to pass on the grant reduction to claimants in the form of benefit cuts.

A draft scheme was put before cabinet members, which will now be subject to public consultation.

One option is that the council and benefit claimants share the burden, a scheme which would see the council spend £686,000 to cover the reduction, which would lead to a smaller cut in benefits for those on low incomes.

In the coming weeks, existing recipients will be informed in writing of the proposed changes and how they may affect them.

Council leader Bill Dixon has already criticised the Government over the policy, calling it “an outright attack on the people in our community who are unable to bear it”.

He added: “There are going to be more claimants next year, more people who are currently employed and are regretfully going to find themselves out of work.

“There are people on breadline benefits and are potentially about to lose 48 per cent of their income.

“In a civilised society, that is obscene.”

Councillor Heather Scott said the opposing Conservative group, of which she is leader, would ‘call in’ the cabinet’s decision to approve the draft scheme for consideration by a scrutiny committee.

Coun Stephen Harker, cabinet member for efficiency and resources, warned such a move would lead to a shortened public consultation exercise.