Bacs offers councils free Direct Debit health check
Local authority sector given chance to shape up collection process in 2008
To encourage efficient practices among Direct Debit originators, Bacs Payment Schemes Limited (Bacs) is offering local authorities a free health check for the Direct Debit schemes they run, specifically looking at 'unpaids' data.
Launched in association with the Institute of Revenues, Rating and Valuation (IRRV), the initiative is designed to help local authorities improve the efficiency of automated payments and minimise the chances of Direct Debit collection failures.
Available for council finance directors, revenue managers and collection officers to obtain confidentially, Bacs will produce reports on council performance which will have been analysed and benchmarked not only against all other local authorities, but also those of a similar size and demographic make up. The reports will typically include:
- An extract of data from four key types of 'unpaids' that a council has experienced for a full 12 month period
- Potential reasons for failures
Importantly the reports will also include top level recommendations to help minimise collection errors in the future, reduce costs and improve customer relationships. For example:
- Making sure all Direct Debit users are clear about what they've signed up for from the start
- Building in more time between sending Direct Debit Instructions to a customer bank and making the first collection
- Giving customers enough advance notice that a payment is due for collection
- Ensuring council staff access and action Bacs' ADDACS reports in an accurate and timely fashion to guarantee that changes to Direct Debit Instructions are made correctly
- Increasing the range and frequency of payment dates available to local residents.
A cost saving calculator will also be included, enabling local authorities to calculate an estimate of overall savings that could be made.
Mike Hutchinson, Head of Marketing at Bacs said: "Everyone with a connection to the local authority sector knows that the Audit Commission supports Direct Debit and actively encourages councils to state it is their preferred payment method. However there is little point in getting local residents to make the switch to automated payments if the calibre of the schemes being run in the public sector are not up to scratch and if the collections are failing."
Continuing he said "That's where we come in. Our aim with this project is not to point the finger or to add to the work load of council officials - many of who already receive regular processing reports from Bacs. Instead, we want to use our efficiency performance report to give councils and idea of the bigger picture and highlight any underlying trends or ailments in their collection programmes. The initiative we have created means we can identify what percentage of their Direct Debit payments may not be going straight through and the root causes of any failures. Once we have spotted any areas of weakness we can pass on practical advice that will improve Direct Debit collection rates across the sector and help deliver long lasting efficiencies."
Councils interested in finding out more about the Bacs Efficiency Initiative and registering to receive their report when it comes available should go to: www.bacs.co.uk/performancereports Once registered, councils will be notified when their personalised report is available and after that, updated reports will be made available every six months so progress can be monitored and the effects of any changes evaluated.
For more information about Bacs and our services visit Bacs key facts.
Contact Bacs press office.