ROSSENDALE council hopes to cut administration costs by encouraging council tax payers to pay by direct debit.

People who sign up to the new scheme could win a council tax-free month.

Winners of twice-yearly draws will save £250 on Band H homes and £82 on Band A homes.

Around 13,500 householders -- 55 per cent -- already pay by direct debit.

Paul Bayes, assistant revenues officer, said: "Direct debit is the most cost-effective method for the council to collect money and is also the easiest way for the public as it saves them having to visit payment points.

"We will make draws in June and October and occupiers of more expensive houses will have exactly the same chance of winning as occupiers of smaller houses.

"As well as saving on our collection costs, it guarantees the smooth and regular income we need."

Some resistance to direct debit is believed to be based on fears of mistakes.

The scheme is run by banks and building societies and they guarantee a full and immediate refund of incorrectly paid amounts.

Direct debits can be cancelled at any time and changes in the amounts to be paid will be notified to the householder in advance.

Direct debit forms and details of the prize draws will be posted to council tax payers with their next bills.