BACS Local Authority Awards set to recognise improvements in council tax collection rates

BACS, the company behind Direct Debit and BACS Direct Credit, announces the launch of the 2006 Local Authority (LA) Challenge Awards. The awards recognise best practice among local government bodies using Direct Debit to collect council tax.

[ClickPress, Mon Jun 12 2006] Local councils successfully using Direct Debit to improve council tax collection rates should put themselves forward for the 2006 Local Authority (LA) Challenge Awards.

Organised by BACS, the company behind Direct Debit, the LA Challenge Awards recognise best practice among local government bodies tackling council tax collection rates head on by converting local residents to regular, automated Direct Debit payments.

This year there are 13 LA Challenge Awards across three separate categories. The first category is the Council Tax Award, which will reward six local authorities that have achieved the greatest percentage rise in Direct Debit usage between 1 July 2005 and 30 June 2006. The efforts of one council will be acknowledged in the second award category – Best Promotion. This award will be presented for the implementation of creative strategies that have encouraged more local residents to choose Direct Debit over other traditional payment methods, eg cash at a council cash office or by cheque.

The third and final award category, which is new for 2006, focuses on quality. In this section, awards will be handed to six successful local authorities that can demonstrate the biggest organisational improvement to result in a direct increase in customer satisfaction and Direct Debit usage - for example, offering bill payers a flexible payment date.

Commenting on the 2006 LA Challenge, Michael Chambers, managing director of BACS, said “Latest BACS research shows that the number of people using Direct Debit to pay council tax bills has increased for the fourth consecutive year – usage is up ten per cent from 54% in 2001 to 64% in 2005. While this figure is impressive there are enormous incentives for local councils to do more.”

Continuing he said, “A recent Audit Commission report revealed local councils could save millions of pounds by increasing Direct Debit uptake. Offering practical advice on improving income collection, the report referenced several local councils which have won previous LA Challenge awards holding them up as benchmarks for best practice – proof that the LA Challenge is the ideal way for local authorities to publicise their efforts.”

In an attempt to help local authorities increase Direct Debit update, BACS has identified two main age groups for whom Direct Debit is the most popular Council Tax payment method - 25-34 year olds and those aged 65 and above. BACS has also identified slight regional differences in the use of Direct Debit. Usage is greatest in the South East of England, the East Midlands (both at 69%) and East Anglia (68%) while Wales, London (both 57%) and Scotland (52%) currently have the lowest levels of Council Tax Direct Debit penetration.

The LA Challenge Awards are free to enter and are open to all local authorities in the UK. Submitting an entry is easy and authorities interested in participating can download an entry form at www.bacs.co.uk/directdebit/entryform. The closing date for submissions is 28 July 2006. The 13 award winners will be notified in advance and the results will be officially announced at a dedicated awards ceremony at the Institute of Revenues, Rating & Valuation (IRRV) Annual Conference in Brighton on 12th October 2006.

In order to ensure the awards are judged fairly, local authorities will be measured against organisations with a similar profile and reach. To find out which category your authority falls into, interested parties should go to www.bacs.co.uk/directdebit/awards

Each organisation that registers for the LA Challenge Awards and goes on to submit an entry will automatically be entered into a prize draw to win a weekend at the Calvert Trust Activity Centre for a group of five local children with disabilities. Final winners of each award will receive £500 to donate to the charity of their choice.

*The Audit Commission report entitled, “Improving Income Collection: Efficient Collection of Council Tax, Housing Rent and Other Income by Direct Debit”, was issued in May 2006. Copies are available at: http://www.audit-commission.gov.uk/Products/NATIONAL-REPORT/5FD491AE-9EB8-4902-B681-92A176804FF7/DirectDebitReport10May06REP.pdf

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About BACS Payment Schemes Ltd (BACS):

BACS has been at the forefront of delivering efficient, reliable and secure electronic funds transfers between banks and businesses for almost 40 years.

As a membership-based 'not-for-profit' industry body, owned by some of the UK and Europe’s leading banks and building societies, BACS develops, enhances and promotes the use and integrity of automated payments and payment related services.

Through its two principal electronic payment services, Direct Debit and BACS Direct Credit, it is responsible for the processing of more than 5.1 billion financial transactions a year, with in excess of 75 million payments on a peak day.

BACS’ success is based on its ability to improve technology for the benefit of banks, businesses and consumers. Since 1 January, payment files are delivered via BACSTEL-IP, a new delivery channel developed in response to the rapidly growing demand for electronic payment services. It provides businesses with the highest level of security in payment submissions, even faster payment confirmation and the ability to track the status of payments online. For further information please visit www.bacs.co.uk.

More about Direct Debit:

Approximately 15,000 organisations currently choose Direct Debit as the simplest, safest and most cost effective way to collect regular or occasional payments from their customers - both business and consumers.

A Direct Debit is an instruction from a customer to their bank or building society authorising an organisation to collect varying amounts from their account, as long as the customer has been given advance notice of the collection amounts and dates. This can be used to ensure regular, safe and efficient payments of anything from household bills to charitable donations. For further information please contact: Natalie Yates or Kim Bithel on 01223 558 601 / 07714766106 or natalie.yates@war.uk.com / kim.bithel@war.uk.com

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