A proposed rise in rent paid by council tenants in Northumberland has been defended by the Conservative administration.
The seven per cent increase forms part of the council's proposed budget for the coming year, and has been criticised by opposition councillors.
However, on Monday, Tory leaders spoke in defence of their policy and explained it was the only way to provide the current levels of maintenance as well as future affordable homes.
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Speaking at a meeting of the council's corporate services and economic growth overview and scrutiny committee, deputy leader Richard Wearmouth pointed out that most council tenants had their rents paid for by the Government via housing benefit or Universal Credit.
Coun Wearmouth also explained the council's proposed new "hardship scheme" that would support those not in receipt of those benefits.
He said: "We have identified the level of rent that will be paid by council tenants. This usually reflects the rate of inflation, so the Government formula would normally allow us to increase up to 11%.
"But, the Government has recognised that would not be sensible and has set a limit of seven per cent. All the councils in the North East will propose a budget that looks at a rise of seven per cent.
"It's important you understand why. Seventy per cent of our tenants have their rent paid by housing benefit or Universal Credit, so for the vast majority of people changing the amount of rent they pay has no effect on their disposable income.
"If we don't put up that rent, we won't be able to do the repairs or replenish the housing stock. Our spending power and our ability to fix council homes would be reduced.
"We're mindful of the 30% of people that wouldn't be covered and so we have thought very carefully about how we can assist in that, given the pressures people are facing in household disposable income.
"We have created a hardship fund of £350,000 that will be available to people who need it."
Income assessments would be carried out to see who would be eligible, with the criteria set to be published in the near future.
Labour's Coun Caroline Ball, who represents the Ashington Central ward, was concerned the move would not encourage people to seek employment.
She said: "I welcome the hardship fund but is it not just a case of robbing Peter to pay Paul? I just see the seven per cent increase as getting more and more people into that poverty trap.
"How is this making sure people are better off in work? I think it's really tragic that his council's budget is dependant on people being trapped in poverty."
Council leader Glen Sanderson argued that the hardship fund would be "very helpful to people who most need our help," and added: "If we're going to have council houses, lets do it properly."
It was also pointed out the budget includes £45m for the council's affordable housing fund, which will be used to purchase and build new council homes, adding to the council's stock and replacing homes lost to the right to buy scheme.
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