WHEN Bill Kiernan went to settle his council tax 'debt', staff were flabbergasted when he produced a penny coin from his pocket and plonked it on the counter... after finance chiefs had sent out a tax reminder bill to the 78-year-old pensioner for the princely sum of 1p!

The penny didn't quite drop at first for retired printer Bill when he picked up his mail to find the tax reminder for the second half of the year, as he was certain wife Eileen had paid up.

After spotting the reminder was only for 1p and speaking to Eileen (69), he quickly realised they had not coughed up quite enough.

Eileen had written a cheque for £460.98 for the second half-year instalment, the same amount as the first yearly payment. But the latter payment should have been £460.99, meaning the couple still owed that odd penny.

But rather than writing off the debt, St Helens Council sent out a letter, stated to be from finance chief executive Ian Roberts, reminding him to pay up by September 30.

But Bill, of Rainhill, said: "It's ludicrous really - they wasted the price of a first-class stamp by sending this letter."

The reminder pointed out that he could pay online or by phone via credit or debit card. But old-fashioned Bill went down to the council offices and promptly produced a penny to settle the bill.

He added: "The council staff were amazed, but I made sure I got a receipt."

St Helens Council explained that it operates an automatic letter system under which reminders are sent out if a computer recognises a balance is outstanding.

Their spokesperson added: "The letter was a reminder, it would never have got to the stage of sending a demand because it would have been checked by an officer, and the amount below the threshold we ask for. We do apologise for any inconvenience caused."