Protesters have taken their demonstration to the assembly Labour faces assembly cash fight

Help the Aged also wants money paid out since the new revaluation of homes to be paid back.

The controversial exercise, which has been postponed in England, was discussed in the assembly on Tuesday as Labour's budget plans are debated.

Council tax was under the spotlight as the opposition united to call for changes in the budget.

All the prices for the services like electricity and gas have gone up... but my pension has not gone up by �30 Maureen Jenner, pensioner

One of those affected by rebanding is pensioner Maureen Jenner, whose bungalow, above Ferryside, Carmarthenshire, went up from band E to F, which saw her monthly council tax bill rise from �107 to �131.

"I was very angry when it went up, I found out about it on the internet," said Mrs Jenner, a widow.

She added: "It's disgraceful, it is a hardship. What is happening is all the prices for the services like electricity and gas have gone up, the rates have gone up such a big amount, but my pension has not gone up by �30.

"People are certainly having to economise in order to meet bills. I have got a private pension but if you haven't you have to go cap-in-hand."

'Income poor'

Mrs Jenner, chair of the Carmarthenshire Older People's Partnership, said she knew many pensioners who did not want to feel "undignified" over their finances.

"If it was paid out of income then people wouldn't have to suffer any indignity. You can be property rich but income poor."

Last week pensioner Sylvia Hardy, from Exeter, was jailed for seven days for refusing to pay an increase in her council tax. Mrs Jenner said she understood why some pensioners would rather go to jail than pay increases.

In 2003 every home in Wales was revalued. Some 60% stayed in the same band, 33% moved up at least one and eight per cent moved down.

It was announced last month the revaluation exercise for England would be postponed until after the next general election.

Sir Michael Lyons, professor of public policy at Birmingham University, is reviewing the way English local authorities are funded.

The Welsh rebanding has led to protests and Mrs Jenner joined a protest at the assembly in February.