The elderly deserve financial security, Mr Howard says

Households where all members are over 65 would get a rebate covering half their bill, up to a maximum of �500.

The Tory leader says five million pensioners in England would get rebates at a cost of �1.3bn, which would come from �4bn in efficiency savings.

The Lib Dems want council tax replaced by local income tax. Labour says the Tories have got their sums wrong.

The older generation have been air-brushed out of Mr Blair's Britain - but I will stand up for them Tory advert in Sunday newspapers The battle for the grey vote In full: Michael Howard's speech At-a-glance: Council tax plans

Mr Howard insisted all his plans were "fully costed and fully funded".

Announcing his party's first detailed tax cutting pledge at Conservative Party headquarters in London, he said: "The test of a society is the way it treats its senior citizens.

"People face a clear choice at the next election: the Conservatives who will increase the state pension and cut council tax and Mr Blair who will forget them and raise council tax."

He added: "The older generation have been air-brushed out of Mr Blair's Britain - but I will stand up for them."

The Conservatives say pensioners have been hit hardest by council tax rises because they are on fixed incomes.

'Stealth tax'

Mr Howard denied the pledge was just targeting pensioners because they were increasing in number and more likely to vote than younger people.

"A third of the increase in the basic state pension under Labour has been swallowed up by the enormous increases in council tax which have taken place," he told BBC News.

"So this is a stealth tax which is really bearing heavily and harshly on pensioners. They need help and we will give it to them."

Pensioners have been hard hit by council tax rises, say the Tories

The Tory discounts would come on top of any existing benefits or deductions for single or disabled people, and would not be means tested.

The policy would initially apply only to England, as local government finance is devolved in Wales, Scotland and Northern Ireland.

The announcement follows a survey released by Deputy Prime Minister John Prescott showing council tax Band D increases in Labour-controlled areas averaged 4.2%, compared with 5.5% in Tory ones.

Mr Prescott said the Tories' sums did not add up and argued pensioners would remember Mr Howard as the man who gave them the poll tax and VAT on fuel.

Lib Dem local government spokesman Ed Davey said many pensioners would still struggle even with the Tory discount.

He added: "This money they say they have available isn't there. If I was a pensioner I would be worried this cheque that they promise will bounce."

The charity Age Concern said the Tories had addressed an issue that was important to elderly people.