PENSIONERS in Colchester are to be spared from £2 million cuts in council tax benefits introduced next year.
The national Council Tax Benefit scheme, for residents with low incomes, will be scrapped next April and replaced with a local council tax support scheme drawn up by councils.
Currently, around 13,000 Colchester residents do not have to pay part or all of their council tax, with the government stumping up the £11.4 million cost to local authorities.
Colchester Council will get £2 million less to hand out to claimants from next April, and have been told to come up with an affordable scheme.
Proposals going out to consultation from tomorrow*weds* would not see any changes for the 5,500 pensioners currently receiving the benefit.
But all 7,500 claimants of working age will now have to pay at least 20 per cent of their council tax - an average of £195 a year.
Other changes will see those with savings of £6,000 or more unable to claim, as opposed to £16,000 currently.
Child benefit and maintenance payments will be taken into account when calculating the benefit, while workers will be encouraged by raising the amount they earn before their payments are reduced.
The consultation runs until September 12. To take part, visit www.colchester.gov.uk/lcts from Wednesday or visit Angel Court.