Telford and Wrekin council tax rise warning
More than 10,000 people in Telford will have to pay more council tax next year, due to administrative changes.
Currently the council runs the tax schemes, but funding to administer them and subsidise those on benefits comes directly from government.
From next year UK local authorities will have more control over schemes, but will receive a 10% cut in grants.
Telford and Wrekin Council is launching a consultation over the changes.
The Labour-led authority said some 8,000 people in the area who currently do not pay any council tax, due to benefits, will have to make contributions.
It added that pensioners and people with severe disabilities would not be affected.
"Everybody else who is working age will be asked to pay some council tax, between 21% and 25%, depending on the consultation," Councillor Bill McClements said.
He added that local authorities faced a tough decision over how much to subsidise the scheme.