The Housing Committee says rent changes are necessary

The States supported plans by the Housing Committee to save �1.5m by cutting rent rebate and limiting who receives it.

The States also agreed to count invalidity and disability benefits as income, which will affect how much rent is reduced by.

Citizens' Advice Bureau manager Francis Le Gresley has said he is appalled and has accused the States of letting tenants down.

We penalise 6,000 people who are probably the least able to afford to lose some of their rent subsidies Francis Le Gresley

Subsidies for people claiming rent rebate and rent abatement are to be reduced from January 2004.

The States approved the changes to the rental subsidy scheme following a two-day debate.

But Mr Le Gresley says it is an appalling decision because one of the groups of people it will hit will be those on invalidity benefit.

He said: "'I understand that the States have got to cut back in a lot of areas. There's not so much money coming in. I understand all those things - I'm not naive.

"But the only thing we can say about what we're doing about cutting back is that we penalise 6,000 people who are probably the least able to afford to lose some of their rent subsidies in some cases, or pay more rent - and I'm appalled by it."

However, Housing President Deputy Terry le Main said he wants to hold a meeting with Mr Le Gresley to explain what the changes will mean.

The Housing Committee says it wants to stop paying subsidies to those it believes can afford to pay full rents.