Residents in Barrow will continue paying their water bills directly to the council for the next five years - a move that nets the authority £10 commission per household.
Barrow Borough Council and United Utilities have signed a further deal, meaning the authority will collect bills on behalf of the water company until 2026.
A spokesperson for the authority said it is a good deal, which sees the commission spent on an expert, who advises tenants how to manage their money better.
They said: "It's a good deal for the area. Barrow is one of the few councils left which owns its housing stock. This allows the council to collect the bills for water.
"The council then passes on the money to United Utilities who pay the council a commission for doing the collection at £10 per household.
"Barrow then uses the money to fund a money management expert, who advises council tenants in difficulty how to manage their money better and gives them debt management advise.”
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