A HOSPICE has benefited from a council's success in a controversial scheme to get residents to pay their council tax bills through their banks.

Derwentside District Council presented £500 to Willow Burn Hospice after the authority got an award from BACS payment system for the increase in council tax direct debits during 2003/4.

Officers in the revenues and benefits division chose the Willow Burn Hospice to receive the money.

Finance director Alan Smith said the direct debit take up had increased from 14,000 in 2002 to 20,400 by the end of November 2004. It introduced paperless direct debit last year.

However, North Durham MP Kevan Jones is demanding changes in the scheme following complaints from dozens of his constituents over the council's policy of prosecuting those who do not use direct debit and then pay late.