Burnley Council is to stop taking cash payments from April.
The council’s Executive was last night recommended to approve the move, which will affect payments at its Contact Centre.
Town hall bosses said the decision will enable staff at the Parker Lane office to dedicate more time to the additional work generated by welfare reform changes, as well as generating a small saving in cash handling costs.
A year ago the council stopped taking council tax and business rate payments in cash.
At the time the Executive asked council officers to look at further reducing cash collections at Contact Burnley.
Over the past 12 months council bosses said the number of payments made at Contact Burnley has fallen from 42,500 to just under 6,000 and said the impact to customers will be minimal.
Coun. Tony Harrison, Executive member for community services, said: “With the challenge of reducing budgets, we have to focus our resources where they are in greatest need.
“The number of cash payments is now relatively small and there are alternative ways of paying, such as debit or credit card and cheque. We will be talking to our customers over the next few months about the best way for them to pay, so I’m sure any impact will be minimal.”