Ministers are facing widespread criticism over plans to forge ahead with council tax benefit (CTB) reforms next year – with IT experts warning the sector is rushing towards a potential ‘disaster' involving payments to six million people.

Under government proposals announced last year, responsibility for the administration and delivery of CTB will be handed to councils from April 2013. Under the plan, £480m – or 10% of each council's CTB budget – will be slashed from the national CTB budget. Ministers claim councils can meet the 10% savings target without slashing payments – by making administrative savings – and have also promised protection for pensioners and vulnerable groups.