Direct Debit delivering vital savings for councils
November 22, 2013
Councils are being urged to access millions of pounds in pain-free savings to help fill the hole left in local authority coffers by government budget cuts â€“ and all they need to do is change the way residents pay council tax.
A local authority campaign encouraging people to switch to Direct Debit for council tax payments netted savings of almost Â£600,000, just this summer. If that were to be replicated across all of the UKâ€™s 400+ council tax collecting authorities, almost Â£14 million a year could potentially be put back into hard-pressed council budgets, according to Bacs Payment Schemes Limited (Bacs), which ran the initiative.
Dawneth Perry is from Bacs, the organisation behind Direct Debit in the UK. She said: â€œDirect Debit saves more than Â£3 billion for UK businesses every year, and itâ€™s time councils took full advantage of that, too, to take some pressure off their own stretched budgets.
â€œSwitching the way people pay council tax, business rates or rent, to a cheaper, more efficient method, has to be better than looking at cutting essential services â€“ it may not fill the entire gap left by the government cutbacks but it can go some way to making up the loss in funding.â€
Bill payers can also benefit, avoiding queues to make payments and the hassle of filling in and sending cheques, as well as being secure in the knowledge that theyâ€™re protected by the Direct Debit Guarantee, through which payers receive a full refund in the event of a problem or an error.
NOTES TO EDITORS
About Eazipay Ltd
- Established in 2002 by local entrepreneurs Kathy and Ron Bradney, and their colleague, Luisa Grey, Eazipay Ltd has become one of the UKâ€™s fastest growing Direct Debit processing companies.
- Eazipay now provides regular Direct Debit services to over 1,000 companies in a wide range of market sectors throughout the UK, Europe and beyond.
- In August 2013, Eazipay recorded its best ever month for Direct Debit collections when Â£28.1million worth of Direct Debits were processed on behalf of its clients.
- Eazipay was awarded â€˜Affiliateâ€™ status from Bacs, the governing body for Direct Debit processing in the UK payments industry. The company is now a member of an exclusive group of 38 other Bacs Affiliates, which includes representatives from some of the UKâ€™s leading businesses, banks and building societies, as well as government organisations and banking technology providers.
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