Telford families to lose council tax aid after government crackdown on benefits

The changes are being made so that people are not able to claim more than £20,000 and breach a new benefits cap introduced after the Conservatives' election triumph in May.

Cuts proposed to council tax support provided by Telford & Wrekin Council would see the authority record a "reduction in costs" of £241,000 per year, according to a report. But the council plans to keep in place a hardship fund of £30,000 which will be available to support the most vulnerable people.

According to the Government's new proposals, couples and single parents who have children living with them will not be allowed to claim more than £20,000, down from the previous £26,000 cap.

Single people will not be allowed to receive more than £13,400, a reduction of nearly £5,000 on the previous £18,200 figure.

The changes being proposed by the Government for the 2016/17 financial year will be discussed at a meeting of Telford & Wrekin Council's cabinet on January 7.

Councillor Lee Carter, Telford & Wrekin Council's cabinet member for finance, said: "It is important as an authority that we continually review our services to not only bring them in line with Government changes but to realise potential savings.

"We must also ensure that support given to customers does not keep them in a cycle of benefit claiming but also protects the most vulnerable.

Councillor Carter added: "By introducing these changes, and in conjunction with other non-financial support available from Telford & Wrekin Council, we are maintaining our commitment to help people into work, providing for themselves and their families independently, while reducing the pressure on the authority to support those families."

Councillors will debate whether to remove the Family Premium from future claims.

The premium currently gives a further allowance of £17.45 per week to families who have at least one dependent child.

The report set to go before cabinet says it has been "invaluable" in the past two years that the council has been in charge of providing council tax support.

The Government has said it will remove the Family Premium for new claims and new births involving housing benefit claimants from April.

The report to cabinet members states: "The combined affect of these changes to the scheme is a forecasted reduction in costs of £241,000 per year."

It added the total cost of the council tax support scheme to the authority is more than £11.5 million.

Public consultation with residents on the changes was run from August to October this year, and letters were sent to the 500 people directly affected.