Cotswold District Council wants to take pensions received by war widows and widowers into account when calculating their council tax and housing benefit.

Finance officials - who are grappling with the problem of finding £2m in cuts over the next three years - think the move would save £55,000 a year.

If the move goes through, 42 pensioners will be left with less money.

'Outrageous' move

Both the Royal British Legion and the National War Widows Association oppose the council's plans.

Colonel Tim Merritt, county field officer for the Royal British legion, called the proposal "outrageous".

He said: "If the council did not see the adverse reaction coming when they made the decision, they were naive."

Council leader Leslie Jones said: "We take seriously the concerns expressed on this sensitive issue and we are considering all the representations made to us."

The council is due to meet again on 10 December.