Latest figures released by Islington Council indicate an increase in the number of people paying their council tax by Direct Debit - meaning additional savings of £500,000 to the council as government cuts bite.
In the last four years, an extra 16,000 residents chose the no fuss payment method which does away with cheques and card processing fees.
With over 74,000 residents in the borough liable for council tax, the payment method chosen represents a significant cost or saving to the council.
Direct Debits cost the council just over a penny per customer to set up while cheque and card processing costs nearer 50p per customer. Altogether, payments by Direct Debit save the council about £500,000 per year.
Using Direct Debit means council tax can be collected reliably and the council does not need to spend time and money sending reminders for payment.
Cllr Richard Greening, executive member for finance, Islington Council said:
"We are on the side of Islington residents and we are protecting the services that they most value in spite of massive government cuts to our budget.
"Paying council tax by Direct Debit saves the council money and is simple and convenient for tax payers.
"I would like to thank everyone who pays council tax by Direct Debit and to encourage others to follow their example, because the money saved helps us to protect front line public services such as childrens centres and libraries."
Other advantages of Direct Debit are that there’s no queuing, paperwork, cheques or postage. In addition, bills can be spread over the year, account holders can choose the day of the month they pay, and there's an immediate money-back guarantee if an error is made.
Islington offers a prize draw for residents who choose to pay their council tax by Direct Debit. Those who are not already registered to pay by Direct Debit need to register by Thursday 24 November for a chance to win £1,000 in the November draw. In January 2012 the winning prize will be £3,000.
Residents who choose to pay by Direct Debit also have their details entered into an annual London-wide prize draw draw with the chance to win £25,000.
For details, go to: www.islington.gov.uk/council/counciltax/directdebit or call 020 7527 2633.
ENDS
Page Last Updated: 04 October 2011