Bacs local authority awards set to recognise improvements in council tax collection rates

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, for example, 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 a LA challenge entry form. 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 12 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 LA challenge catagories

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.

For more information about Bacs and our services visit Bacs key facts.

Contact Bacs press office.


Back to 2006 press releases             Back to press releases