Labour councillors staged a protest against the ‘bedroom tax’ in Boston town centre on Saturday.
The demo mirrored protests in towns and cities across the UK against cuts to benefit for social housing tenants with ‘underused’ rooms.
In a statement, the councillors said: “We spoke to one disabled person who told us that they have been told to either pay for their extra room, which they use to store their special disabled equipment, or move house which they have lived in for more than 20 years.
“They live on the poverty line and don’t know how they will find the extra money.
“They may have to give up their disability car which they depend on to get anywhere as they live in a rural area, as they don’t think they can afford to keep it any longer.
“One partner is disabled and the other is a pensioner who has medical issues.
“We all know there are no small properties available in Boston so where are they supposed to move to?”
Last week we revealed the plan will affect 657 people in Boston and housing association bosses warned there are not enough smaller homes in the borough for people to move to.
MP Mark Simmonds has vowed to take up the case of anyone who feels unfairly trated - but said the policy is needed to ease the shortage of social housing across the country.
Labour councillors criticised Mr Simmonds and said it was hypocritical for MPs on good salaries to say ‘we’re all in this together’ while cutting benefits.