THERE are fears some residents will be left struggling if Basildon Council agrees to overhaul a welfare benefit.

The change to the Local Council Tax Support Scheme would be the largest Basildon Council has made in the past five years and comes as cuts to government funding threaten to leave the borough with no support after 2020.

The new system, dubbed the Council Tax Reduction scheme, will see the introduction of a “banded scheme” which will calculate the tax reduction based on household income. But Basildon council has acknowledged that it will leave 466 households £26.04 worse off each month, while 676 households could be better off.

The council has said the changes mean a more streamlined system that saves on administration costs but a Labour councillor and member of the Corporate Resources Committee has said that it does not justify leaving some residents in a poorer position.

Labour councillor Jack Ferguson said: “This reflects the short-sighted approach from this Conservative administration. They are saying this will be a simpler system but it will make 466 households worse off.

“That is around 40 percent of people using this scheme.”

Councillor Stuart Sullivan, chairman of the Corporate Resources Committee, defended the new scheme, saying it is less complicated that the old system and is based on household income compared with household size.

He added: “The recommended scheme would result in some customers receiving a greater council tax reduction, and some customers receiving a smaller council tax reduction – although the majority of customers will see no change.

“The households ending up worse off will not be our poorest customers, who will continue to be fully supported.

“When changes are made to any support scheme there will always be customers who gain and customers who lose. 

“We carried out a publicised public consultation and this proposed scheme was the preferred choice.

“Customers will benefit as the proposed scheme introduces a simpler, less intimidating application process.

“They will receive an instant decision at the point of application.”