Decision details

Approval was sought to introduce the phased removal of cash, cheque and postal order payments at Oldbury Council House. A further report would be provided to Cabinet in due course regarding the phased removal of cash and cheque postal order payments at all Council establishments. 1.1% of all transactions were carried out via cash transaction. It was deemed that the cost of administrating these payments far outweighed the benefits. Pay points and post offices were still available to be used throughout the borough for those who wished to make any cash transactions. The resulting footfall to post offices would also be a benefit. If fully implemented, savings of £250k would be realised.

An appropriate Equality Impact Assessment and subsequent consultation would take place following approval. If requested, outcomes of the consultation and a copy of the Equality Impact Assessment would be circulated to Cabinet and Scrutiny Chairs. The vast majority of all transactions were already via Direct Debit, online or bank transfers and the Council’s current and future systems were resilient.

Reasons for decision

If all cash and cheque handling transactions were stopped, staff savings in the cashier’s office would have been between £200k - £250k per annum. The savings would be phased over the project timeline in line with the recommendation to stop taking cash and cheques at Oldbury Council House first, followed by a phased approach across other Council locations. Savings would be confirmed as the Project Plan progressed.

Alternative options considered

Do nothing, continue as is.

Implement non-acceptance of cash and/or cheques & postal orders only at Council House, Oldbury, with other council services such as libraries and Sandwell Valley remaining out of scope.  A decision would also be required whether to retain the internal kiosks.

Adopt a longer-term phased approach, commencing with implementation at Council House, Oldbury, followed by other council services and establishments, such as libraries and neighbourhoods within an agreed timeframe.

Resolved:-

(1)   that the principle of ‘Going Cashless’ at all Council establishments is approved and endorsed;

(2)   that the Director of Finance – Section 151 Officer be authorised to introduce the phased removal of cash, cheque and postal order payments as follows:

i)           stop accepting cash, cheques and postal orders at Oldbury Council House, including through the kiosks;

ii)         consider the opportunity to stop accepting cash, cheques and postal orders in all council locations and a further report be brought back to Cabinet once further consultation has been undertaken;

iii)        cease the use of cheques for payments to suppliers and customer refunds;

iv)       where Council locations do require continued acceptance of cash & cheques, arrange direct banking collections and deposits and authorise the Director of Finance to undertake the appropriate procurement arrangements for the provision of this service;

(3)   that Phase One of the Project Implementation Plan as seen in Appendix 1 be approved including carrying out appropriate consultation and Equality Impact Assessments;

(4)   that a further report be brought back to Cabinet prior to the implementation of Phase 2 of the Project Plan.