COLNE Valley Liberal Democrats have blasted Government tax reforms aimed at keeping old people out of poverty.

Elisabeth Wilson, the party's candidate at the next General Election, said the council tax system was too complicated for the elderly.

On Monday, the Government launched a campaign urging pensioners to apply for council tax benefits which could save them £400 a year.

Despite a number of campaigns, around 40 per cent of eligible people have not claimed.

Ms Wilson said: "The way to make local tax fairer, according to the Liberal Democrats, is to abolish council tax and replace it with a local income tax based on the ability to pay.

"Local income tax has fairness built in - so that would cut out the need for a special benefit."