LOCAL authorities across the South West are preparing to slash welfare payments to some of the most vulnerable people in society by an average of 20 per cent as a result of government funding cuts to council tax support schemes, according to new research published by False Economy.

False Economy – the TUC-backed anti-cuts campaign website – has analysed the proposals of 14 of the first councils in the region to publish detailed plans for consultation over the new council tax support schemes.

The councils are Bristol, Cheltenham, East Devon, Exeter, Gloucester, Mid Devon, North Devon, Plymouth, Sedgemoor, South Hams, South Somerset, Teignbridge, Torridge and West Devon.

Nigel Costley, regional secretary of the South West TUC, said: "Swingeing cuts in council tax support will cause further misery for some of the poorest people in society.

"Low-paid workers will be further impoverished at a time when their wages are already falling in real terms. Any tiny gains from the increase in their personal allowances will be of little comfort as they see other forms of financial support slashed.

"The government must realise that it isn't possible to build a recovery off the back of making already poor people poorer."

Under the current system, people on low or no incomes have up to 100 per cent of their council tax paid by their local authority through council tax benefit.

However under the government's new Universal Credit, council tax benefit will be scrapped. Instead, local authorities will need to introduce local council tax support schemes – due to come into effect next year. The government has cut the money available for these schemes by ten per cent and said that no pensioners will lose out under the changes.

Other key findings from the national False Economy research include:

•   Most councils will not be able to protect disabled people, lone parents with young children, or other vulnerable groups from the impact of the cuts.

•   Eight councils are targeting parents for specific cuts by including income from child benefit and child maintenance when considering who is eligible for council tax support.

•   Councils are predicting that many claimants will find their council tax bills rocketing by hundreds of pounds.

Many councils – including Conservative-run local authorities – have already written to the government urging ministers to rethink the cuts.

The cuts in council tax support are due to take place from April 2013, at the same time as housing benefit is reduced and child benefit frozen. This combination of cuts will be a hammer blow to millions of people either out of work or on low incomes, particularly as most people's wages are also falling in real terms.

Many in local government fear that the changes to council tax support will cause severe administrative difficulties locally. The combination of welfare cuts targeted at the most vulnerable in society will also increase poverty and could lead to mass non-payment of council tax, False Economy warns.

Swingeing cuts to council tax support could lead to levels of non-payment similar to that which happened under the poll tax, with taxpayers' money spent chasing council tax payments through the courts from people with no hope of ever being able to pay up, says False Economy.