Council leader Ian Greenwood is calling on fellow councillors to back a consultation on changes to council tax benefits which will affect tens of thousands of people in the district.

Government reforms will see councils taking on responsibility for a localised rebate scheme for council tax from 2013. It would also mean a loss of £4 million a year in support across Bradford as the changes are intended to save the Government ten per cent.

In his motion to a full meeting of Council next week, Councillor Greenwood states: “The Council will be faced with making very difficult choices between increasing council tax for people and families on low incomes and in poverty, reducing other services to maintain existing levels of support or the short-term use of reserves to supplement Government support for council tax.”

It also comes at a time when the number of people eligible to claim council tax benefit may rise, which would leave the Council with additional financial risks, he added.

Currently the benefit is administered by local authorities under national regulations and is funded by the Department for Work and Pensions. The new proposals would see councils controlling the policy while continuing to be responsible for council tax rates and collection.

A ten per cent cut would equate to £4m a year, based on previous years’ expenditure in Bradford.

As the Government aims to protect pensioners from any cuts in support, this means the remaining claimants would be hit harder – by cuts of up to 17 per cent. Any public consultation would make clear the full effect of all the options.

The plans to localise the benefit are intended to give councils increased financial freedom and to simplify the system of allowances.

Coun Greenwood added: “It’s an extremely difficult decision to make and we want people to understand this. At some stage we will have to take a decision about which other groups are protected and which ones are not.”

Council tax benefit is available to those on low incomes and 56,000 people claim the benefit in Bradford.

Bradford East MP David Ward said: “Pensioners will be protected so the danger is others will be hit even harder than the ten per cent cut. This is a major concern and is being rushed through.”