Kingston pensioners who have saved for retirement face dramatic increases in the cost of home care, under new council plans.

A new banding system linking charges to investment or pension income would see the cost of home care rising from the current weekly maximum fee of £36 to as much as £400 for the wealthiest recipients.

While some of the poorest pensioners could end up paying less, those with an income of about £167 a week after tax, housing costs and council tax could see their charges go up 40 per cent to £50 a week.

The scheme will not take earnings into account but will also affect younger disabled people who have a private income.

The proposals have been condemned by opposition councillors and campaigners as unfair and an extra tax on people who already pay national and local taxes.

The banding system only sets out maximum charges and the council will not charge more than the actual cost of providing each hour of care - currently £14.50.

Those receiving a home help service for an hour or two a week will not see much difference under the scheme. Elderly and disabled people needing many hours of care a week who have a substantial pension or investment income will be hardest hit.

The scheme was drawn up to help control the council's spiralling care budget which alone contributed half a per cent to this year's 7 per cent council tax rise.

It was expected to be approved in principle by the council's executive yesterday (Tuesday) before local groups and service users are consulted.

A final decision will be made in August and, if agreed, the scheme will be phased in over four years from October.

The council expects up to 135 of the 900 people currently receiving home care to face higher charges and hopes the measure will save £250,000 a year by 2008.

Council leader Councillor Derek Osbourne said it was fairer to charge wealthy people for the cost of their care than charge everyone through council tax.

He said most local authorities already charged a rate similar to the planned scheme.

He said: "This isn't going to drive elderly people into poverty. You are not talking about the little old lady living in a rundown house. We are talking about people who are comfortably off and will still be comfortably off."

But director of Kingston Centre for Independent Living Marc Moss described the scheme as unfair and said many of his clients would feel they were being punished for being disabled.

He said: "It seems that as recipients of local authority services we pay national taxes and council tax and get this additional tax. It will mean that people will obviously suffer more by virtue of receiving services that they absolutely need. They are being charged for the privilege of living."

Conservative leader Councillor Kevin Davis said: "This scheme isn't transparent. It's going to frighten vulnerable people."

Labour leader Councillor Sheila Griffin said the party would remain vigilant to see how the plans developed.

sbrody@london.newsquest.co.uk