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 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 £600,000, just this summer. If that were to be replicated across all of the UK™s 400+ council tax collecting authorities, almost £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: Direct Debit saves more than £3 billion for UK businesses every year, and it's time councils took full advantage of that, too, to take some pressure off their own stretched budgets.
Switching 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 “ 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.
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 they'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 UK™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 £28.1million worth of Direct Debits were processed on behalf of its clients.
- Eazipay was awarded Affiliate™ 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 UK™s leading businesses, banks and building societies, as well as government organisations and banking technology providers.
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