Thousands of Birmingham householders will soon no longer be able to settle their council tax bills through the traditional booklet payment method.

In a move designed to cut administration costs and improve cash flow, the city council cabinet is to replace the existing system with two options, either automatic direct debit payments from bank accounts, or through plastic cards at post offices.

The new system, due to start in April 2009, will affect 247,000 people – 60 per cent of all council tax payers – who currently use booklets to make 10 payments through the course of a year.

People opting for a plastic card rather than direct debit will have to make payments two weeks earlier than at present, on the 1st of each month rather than the 15th. Those preferring direct debit, however, can choose to pay on one of four dates throughout the month.

The changes are expected to generate savings of £600,000 over two years, according to deputy council leader Paul Tilsley.
Coun Tilsley (Lib Dem Sheldon) said people paying by direct debit were less likely to get into debt.
Only 43 per cent of bills are settled this way in Birmingham, compared with 56 per cent in Coventry, 60 per cent in Dudley and 55 per cent in Walsall.
The cost to the local authority of direct debit payments, at 1.5p per transaction, is significantly lower than any other method.
Coun Tilsley added: “We fully acknowledge that booklets are a traditional method of payment for many households, but society and the way transactions are made has changed.
“By standardising our payment date and replacing booklets, we stand to make huge efficiencies, which means much more money can be pumped into our services.
“The majority of people who still use booklets do so out of habit. Most have bank accounts, so could use direct debit, which we are making as easy as possible by giving the option of paying on the 8th, 15th, 21st or 28th of the month.
“Payments will also continue to be possible via the new cards at all existing designated locations including post offices and PayPoint and Payzone outlets as well as at our offices throughout the city.
“It is only right that we make our collection system one in the best interests of the city.”