PENSIONERS and council tenants are facing a "double whammy" tax and rent blow as city leaders struggle to balance the books.

Citizen's representatives have hit out at budget plans which could hit the elderly and vulnerable people on benefits the hardest.

But York politicians say they are being forced to make tough decisions so that there is enough cash to fuel public services.

They are calling for an inflation-busting council tax rise of ten per cent to maintain standards and avoid cuts.

Councillors look likely to approve a Government-proposed rent increase of almost four per cent for the city's 8,500 council properties.

The decision means the average council rent over 52 weeks will rise by £1.94 from £49.88 to £51.82. An average one-bedroom property will see an increase of about £1.86 per week, an average two-bed property, an increase of about £2.03 per week and a three-bed property an average increase of £1.91 per week.

Pat Holmes, 66, chairwoman of Lindsey Avenue Residents' Association, said the rent rises were a blow for pensioners.

"It's going to hit them hard," she said.

"It's very difficult for elderly people who haven't got benefits and have low incomes."

Richard Porter, of York and District Citizen's Advice Bureau, said the tax and rent hikes would hit pensioners and those on benefits the hardest.

He said: "We are particularly concerned that these rises will affect those who can least afford it.

"It is likely that it will hardest hit those who are receiving benefits to help them get back to work, and elderly people who are in receipt of pensions just above benefit thresholds.

"We will be looking to raise this matter with other voluntary organisations throughout the city."

Don Parlabean, chairman of the Older People's Assembly, said: "These changes will always hit pensioners the hardest because they have got no way of increasing their income.

"They are consistently getting poorer and poorer as their pension is eroded by increased taxes and living costs."

Residents are being balloted on what council tax rise they want, choosing between ten per cent, 7.5 per cent and five per cent.

Civic leaders have said that lower increases will mean cuts in services such as social services, leisure and the arts.

The council's housing panel is expected to refer a 3.88 per cent rent rise to the authority's ruling executive for approval when it meets next Monday.

Tenants will receive four weeks notice of any changes to rents.

Case study

Widower James Slade is 83 and lives in a one-bedroomed council flat in Heworth

Incomings:

State pension - £362 a month

Work pension - £600 a month

Total = £962

Outgoings:

Council tax - £54 a month

Council flat rent - £311 a month

Electricity bills - about £15 a month

Phone bills - about £10 a month

Food - about £45 a month

Transport - about £25 a month

Total = £460

Total with proposed rent increase and ten per cent council tax rise = £477.40.

Under the proposals, Mr Slade's council rent would increase by £12 a month, taking his bill up to £323.

If the levels of council tax rose by ten per cent, Mr Slade would pay an extra £5.40 a month, taking his bill up £59.40. A five per cent increase would mean an extra £2.70 a month.

Mr Slade said: "There are a lot of people much worse off than me. I'm lucky to have a work pension. Slowly but surely these rises eat into your reserves. I'm disgusted by the way the council is always asking for more all the time."

Rises are out of our hands says Galloway

CITY of York Council leader Steve Galloway said the rent rises were out of the council's hands, as the levels were set by central Government.

"We have no control over it, but I think tenants are getting good value for money when you look at rents in the private sector."

Coun Galloway said it was up to the public to decide what levels of council tax they wanted.

"We know it's an unfair way of raising revenue compared to income tax.

Pensioners are obviously hit very hard by council tax, so the quicker the Government replace it with something fairer the better.

"The problem is exacerbated in York because the city gets a very poor grant from the Government."

Updated: 10:07 Friday, January 07, 2005