Plans to replace a Morden school with housing and community facilities have infuriated residents after Merton was forced to disclose the new neighbours may be on benefits.

The news for people living near the soon-to-be redundant Morden Farm Middle School came at a meeting of around 150 residents organised by Tory councillor Jan Jones in response to complaints that most people living there had not been briefed or consulted.

Neighbours say plans to develop the Aragon Road site must take account how they will cope with more traffic generated by an estate.

Reorganisation of Mertons schools, from a three-tier to a two-tier system, has meant land surplus to requirements is being sold off.

The council sent a planning brief in September to companies interested in making a development bid.

The brief states that at least 50 per cent of the development, in an area predominantly owner-occupied, should be affordable, with an average of 30 to 100 per cent of new units where there are 15 or more kept as permanent affordable housing.

One resident wanted to know whether Park House Middle School in owner-occupied Wimbledon Village would be sold for affordable housing but got no response from Coun Jones or planning officer Ian Bremner.

Coun Jones said affordable housing meant accommodation for key workers, such as nurses and teachers, but howls of disgust followed after it was revealed that

five different housing associations had been sent the brief raising fears about the type of housing planned.

Protest leader Steven Shelford said:I had a letter from an 87-year-old man who has lived here with his disabled wife for 40 years. He said he was scared to go out a night already and the type of people put onto the new estate may make it worse.

A council spokesman said: With this site we extended the consultancy period, that started in November, until the end of the year, to give people time to respond. The next step will be to incorporate the feedback into a new brief that elected members will then consider.