A PUBLIC consultation will be held over changes to benefits in Hyndburn.

Hyndburn Council is facing a potential funding shortfall unless it makes changes to its council tax support payouts.

Government funding for the current Council Tax Benefit scheme is demand led, whereas it will soon be funded by a cash-limited grant 10 per cent lower than the council’s predicted 2012-13 Council Tax Benefit spend.

The council face a shortfall of hundreds of thousands of pounds and face one of three options.

It could either pass the shortfall on to residents by increasing Council Tax rates, cut services in other areas, or pass the shortfall onto claimants by reducing their benefit.

Hyndburn Council has chosen to reduce benefits and set up a new draft scheme along those lines.

This reduces annual spending by £812,000 and makes changes to entitlement for working age claimants which means that their benefit is reduced and they will have to pay more.

Prior to adopting the scheme a wide ranging public consultation must take place, which will be launched by the council.