COUNCIL leaders from across North Yorkshire have lodged a protest with the Government over controversial changes to council tax benefits which they say will hit poorer families.

A new “localised support” scheme, due to be introduced next spring, will see local authorities receive a fixed amount of funding to support those needing help with bills, such as the unemployed, disabled people and those on low incomes.

But it has been criticised amid claims councils will have to pass on huge anticipated cash shortfalls to residents.

City of York Council has said the changes would leave it with a £1.3 million financial black hole next year, meaning it may have to look at cutting services or withdrawing support from some vulnerable people to deal with the gap.

Now Coun John Weighell, who leads Conservative-controlled North Yorkshire County Council, has written to Communities and Local Government Secretary Eric Pickles on behalf of nine of the region’s local authorities to call for a rethink.

His letter warned poorer residents will face council tax rises of more than 20 per cent to cope with the financial demands of the proposals and criticised ministers for pursuing the scheme despite “considerable opposition”.

He said councils should have the power to cut the 25 per cent single-person council tax benefit, which Mr Pickles has ruled out.

Coun Weighell, representing the views of Selby , Ryedale, Hambleton, Harrogate, Scarborough, Richmondshire and Craven district councils and City of York Council, also argued North Yorkshire will be particularly affected because of its ageing population. Pensioners would be exempt, meaning bigger cuts among other claimant groups.

“The Government needs to recognise the demographic reality of an area and provide additional funding in areas with high numbers of elderly people, otherwise rural areas like North Yorkshire will be penalised,” he wrote.

Local Government Minister Grant Shapps said the changes would encourage councils to cut fraud and get more people into work.

City of York Council leader James Alexander said: “Conservative councils in North Yorkshire are standing shoulder-to-shoulder with the Labour council in York.

“I have spoken with their leaders and I know they feel just as strongly as I do that this will not only hit councils with yet another major cut, but hit them disproportionately.

“The irony is that those councils with higher levels of low-paid workers claiming will get hit the hardest, when the Government’s policy is to make work pay.

“Any cut in council tax benefit for those in work completely fails in that objective.”