ELDERLY residents could suffer after proposals to axe the over-the-counter council tax payment service were unveiled.

Pendle Council is considering withdrawing its cash collection service, which currently allows residents to pay their bills at council shops and offices.

The decision could be the death knell for the council shops, with the council admitting they could no longer be viable if the cash collection services are stopped.

The move could save at least £160,000 a year, a council report said.

Residents would have to pay their bills via direct debit, online or over the phone.

But Barnoldswick councillor Jenny Purcell said elderly people rely on the service. She said: “A lot elderly people can’t use the internet and don’t feel comfortable paying these bills over the phone, it is yet another case of services that affect a lot of people being cut, they are cutting from the bottom rather the top.

“Council shops are very important, especially over in Craven, and we will fight any plans to close them down.”

Dean Langton, financial manager at Pendle Council, said: “It is widely recognised that methods of collection that do not involve employees transacting the payment are substantially cheaper than other payment methods.

“This is no different for Pendle where the cost per transaction of each method of collection varies considerably ranging from 2p for direct debit to £2.60 for cash collection in council shops.

“In terms of the latter, as the number of cash transactions declines given the availability of other more convenient options, the cost per transaction will, inevitably, rise. The withdrawal of these facilities will be undertaken on a phased basis. It is proposed that the service provided at Colne Town Hall will be withdrawn no later than December 31, 2013 with the remaining collection services withdrawn by March 31, 2014.

“The estimate of savings above also excludes those property savings that would be achieved from the closure of council shops where it is not considered viable for them to remain open although it is acknowledged at this stage that this would be a matter for further consideration.”

Pendle’s executive committee will discuss the proposals on Thursday.