Hull Council yesterday began seeking all-party support for a motion calling on the company to withdraw its late payment charge of £5 for bills that are not settled within a fortnight, and its plans to introduce a £1 charge for customers who receive their bills through the post.

The move follows a similar motion that received unanimous backing at a meeting of East Riding Council on Wednesday.

Both authorities are forming a joint scrutiny panel to examine the charges and Hull Council leader Carl Minns will meet with company executives early next month to raise his concerns in person.

The motion being drawn up by Hull Council states: "KC claim they are trying to reduce their carbon footprint with their new billing system, but hiding behind an environmental conscience does not hide the fact they are removing customer choice.

"Council believes this is effectively a tax on poorer consumers and those without access to computers."

Coun Minns said he feared the charges could "push people over the edge".

He said: "My greatest concern is the £1 charge for getting a bill through the post because that hits people like the elderly and the vulnerable who can't afford internet access.

"At a time which is very worrying for families with job losses and price rises across the board it's another burden for hard-working families to contend with.

"It might only be £1 but it's the sort of thing which sometimes pushes families over the edge."

East Riding Council leader Stephen Parnaby said both authorities were reacting to "huge" public concern and that forming a scrutiny panel was the best way to examine the issue.

He said: "I and other councillors in the East Riding and Hull have had a huge backlash from the public on this and I think it the best way forward rather than reacting without knowing all the details.

"I have had correspondence from KC and they have put their argument forward.

"We need to look at it reasonably and rationally and at least we can reassure the public as elected members that we are having a look at it and we await those findings."

The company reduced the late payment deadline from 21 days to 14 in August and intends to start charging an extra £1 for paper bills on January 26.

It said it had written to councillors on both authorities explaining the charges and requested meetings with both council leaders.

A spokeswoman said: "To reduce our consumption of paper and energy in bill production, we are introducing a £1 charge for every paper bill we produce.

"This is designed to encourage people to switch to viewing their bills online using our KC online service. We have also reduced the payment terms for settling accounts from 21 to 14 days, after which our £5 late payment charge is applied.

"The best way to avoid incurring this charge is to move to paying by direct debit, which guarantees payment on time and also gives the customer a discount on their call package."

She added: "These measures are not dissimilar to the terms under which other organisations already operate."