PENSIONERS in Kent are set to face smaller rises than other council tax payers from next year under a Government backed proposal to peg future increases to the rate of inflation.

Kent County Council put forward the idea last month suggesting other tax payers could pay the shortfall allowing increases for pensioners to be held at about 2.5 per cent.

Local Government minister Nick Raynsford in a letter to KCC leader Cllr Sir Sandy Bruce-Lockhart (Con) confirmed that the idea was in line with new legislation coming into force next month.

Under Section 76 of the Local Government Act 2003 local authorities are allowed, for the first time, to create locally defined discounts and exemptions on council tax.

Discussions are under way with district and borough councils about how the proposals will work, with two options under consideration.

People aged over 65 or 75 the age limit has yet to be set will either get a reduced bill or be asked to pay the full amount and apply for a refund.

There are 560,000 chargeable council tax homes in Kent, of which nearly a quarter (23 per cent ) are classified as pensioner households.

KCC says that if it introduces the scheme for all pensioners over the age of 65, other householders would have to pay on average about 23p-26p more per week, or £12 to £13.50 more per year. That figure would be reduced to an extra 12p per week, or £6 per year, if the initiative is restricted to the over 75s.

In his letter to Mr Raynsford outlining the plan Sir Sandy said the annual increases in council tax were causing pensioners across Kent great difficulty. He stressed: "We are very concerned about the impact that above inflation council tax increases are having on everybody, but particularly pensioners whose ability to pay is extremely restricted."

He added: "If the Government increases pensions by five to seven per cent to match its predicted council tax rise for next year we won't have to do it."

The Chancellor of the Exchequer Gordon Brown is due to make a decision in his budget statement next month.

The rebate proposal has been greeted with suspicion by opposition parties.

Labour group leader Cllr Dr Mike Eddy said the full implications of the proposals had not been thought through and he accused council leaders of using pensioners as a political football.

Liberal Democrat leader Cllr Trudy Dean said the proposals would increase the pressure on hard working people, already feeling the strain.

She said: "There are poor pensioners but not all pensioners are poor. Many can well afford to pay.