ABOUT £3 million to help those struggling to pay council tax will be lost next year when welfare reforms come into effect, it is claimed.

Local authorities will be required to create their own schemes to support those struggling to make ends meet when the funding system for council tax benefit is changed in March.

Funding will no longer come from central government and Waltham Forest Council said there will be significantly less money available.

The changes will impact on some of the borough's most vulnerable residents, according to the authority, although pensioners will not be affected.

A report presented to cabinet last week states that devising new options was very difficult. It adds: "We know that whatever we do many people on low incomes will be forced to either pay some council tax, perhaps for the first time, or pay more towards council tax as a result of these government cuts.

The reports said the main elements of the existing benefits scheme will remain, but the need for savings makes changes inevitable. Two options have been put out to public consultation.

The first involves reducing the maximum support available to 85 per cent of bills. Currently those who are worse off can access benefits to cover the full amount, but they will have to pay 15 per cent under this proposal.

The second option includes reducing the maximum level of support to 90 per cent, while including child benefit in any means-tested assessment of income for the first time.

This would mean families currently accessing support would have to pay more.

Tim Moore, 36, of Arbour Road in Chingford, said he fears he will find it harder to support his wife and five children under the cut.

Mr Moore gets child benefit for his daughters as well as child tax credits, and is not required to pay for his council tax, but under one of the new options these benefits would be considered part of his income, while he would also pay 10 per cent of his council tax.

The part-time Tesco employee said: “It’s a tough situation that’s going to get tougher now. I got paid on the 26th and we’re already borrowing money from my mother-in-law.”

He added: “It’s a horrible situation. I’d work all the hours in the week if I could but they aren’t there. It’s like we’re not being helped out of this situation. Once you’re poor you’re stuck.

“With Christmas approaching it’s a tight squeeze but why do the worst-off have to suffer the most?”