Council's £200 tax rebate to credit crunch-hit families and pensioners

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Householders who are struggling with the cost of living are to be given council tax rebates of up to £200 in an unprecedented move by a local council.

Refunds will be targeted at low-income families, pensioners and soldiers faced with soaring mortgages and food and fuel bills.

The aid is being organised by Essex County Council, which said it had a duty of care to its residents.

It was announced days after Gordon Brown stepped back from issuing hard-up families with a £100 voucher to help with fuel bills this winter, paid for by a windfall tax on energy companies.

Lord Hanningfield, leader of the Tory-run council, said: ‘If central government cannot come up with a credible package to support people through these difficult times, then local government must step up and use whatever powers it has to fill this void.’

The council believes it can identify those most in need by liaising with the Department for Work and Pensions and HM Revenue and Customs.

Details have yet to be finalised but the authority hopes to send out cheques in time for the year’s heaviest fuel bills.