THE Governments' new campaign to encourage pensioners and those on low incomes to apply for help with their council tax has been welcomed by Devon County Council.

A restriction will be lifted from April 2004, that prevents people who live in F, G and H council banded properties from entitlement to full council tax benefit.

Chris Pond, from the Department of work and Pensions Minister, said: "This will help large families on benefit.

"Particularly those living in some inner-city areas, who need to rent properties which fall into these bands."

In Devon the lifting of this restriction would mean extra help for up to 1,000 households, and the council hope this would encourage people living in these properties, who may be on a low income to apply for help for the first time.

Leader of the Council, Councillor Brian Greenslade, said: "We're in quite a unique position in Devon.

"We are property rich but cash poor, meaning property has a high value, but our earnings are lower than the national average.

"It is good the Government has removed its restriction for these bands, making it possible for everyone now at least have a chance to claim the full cost of their council tax.

"However we still believe that the Government should be doing more to make council tax fairer, linking the tax with people's ability to pay rather than with the value of their property - something that we've been pushing the Government very hard to reform."

CAREdirect, Devon's pioneering service for older people hosted by the County Council, has been actively promoting the take up of council tax benefit throughout the county, and has helped pensioners successfully claim approximately £1 million in council tax.

Paul Searle of CARE direct, said: "A third of all pensioners who are entitled to council tax benefit do not claim it.

"The Government estimate that between £590 and £860 million of council tax benefit goes unclaimed each year and in Devon that figure equates to about £5 million of unclaimed benefit.

"We're urging Devon's pensioners and their carers to contact us on freephone 0800-444000 to find out more about possible entitlements to council tax benefit and other benefits such as pension Credit and Attendance Allowance."