WAR VETERANS and their families in Chester-le-Street are facing up to another financial year as victims of a so-called post code lottery.

Chester-le-Street District Council is one of just eight out of 445 authorities in England and Wales which do not discount all, or nearly all, of the widows' and veterans' pension money when calculating council tax benefits.

When the authority assesses housing and council tax benefit for war pensioners, only the first £20 per week of their pension is not counted, or 'disregarded'.

This leaves veterans facing much bigger bills than in neighbouring Derwentside where councillors voted to disregard all the pension two years ago.

With this year's council tax about to be set by Chester-le-Street on February 28, 70-year-old Korean War veteran John Wilson is angry he will again be out of pocket compared to other ex-servicemen.

The Hilda Park resident said: "I fought in the Korean War for this country, but veterans living in Stanley just five miles up the road would be considerably better off.

"I am being penalised for where I live. I receive just over £200 a week war pension, including benefits, but almost all of it is taken into account.

"As a result I am hit heavily with council tax and, as things stand, I only have enough money saved up to bury me.

"On top of that, council tax in County Durham is expected to rise by anything up to 17 per cent."

Around 50 pensioners and widows in Chester-le-Street had their benefits increased in 2000 after the council doubled the amount they would disregard from the first £10 to the first £20.

This meant their housing benefit rose by up to £6.76 a week and their council tax benefit went up by £2 per week.

But, according to John Hipkin, a Newcastle-based campaigner for pensioners' rights, it is still not enough.

He said: "It's possible you could have two men who fought alongside each other in the same regiment, in the same war, but one of them is being penalised all these years on.

"With the council budgets now being set, Chester-le-Street should look at getting rid of the means-tested system."

A council spokeswoman said war pensions is something they will review 'from time to time.'