Poor families are set to have their council tax benefits cut, a think-tank said yesterday.
Around six million low-income households qualify for the support, either paying no council tax or having their payments reduced.
But the Coalition has told councils to slash their benefit bills by 10% – and this will have to be passed on through cuts to services or payouts to poor families, the Institute for Fiscal Studies warned.
IFS chief Paul Johnson said: “They could decide to take 10% off the current cost of council tax benefit, which means some council tax recipients will be worse off.
“It’s quite hard to do this without affecting those who receive 100% council tax benefit – the very poorest.”
Labour peer Baroness Hollis said the proposals were “deeply unfair”.
But Tory MP Bob Neil claimed the changes would give councils an “incentive to get people back to work”.