Bacs reveals Brits could be missing out on savings of £716.3 million!
Bacs, the organisation behind Direct Debit, has revealed that British householders could be missing out on combined savings of up to £716.3 million each year, simply because they don’t pay their regular bills by Direct Debit(1).
Research by Bacs has shown that British households could each save as much as £235 every year(2), just by choosing to pay their regular bills including, dual fuel, broadband, landline telephone, subscriptions and mobile phone by Direct Debit. However, despite this fact, more than one in ten British households still do not have a single Direct Debit commitment(3).
Mike Hutchinson, head of marketing at Bacs, says: “This data highlights the staggering amount of savings that those British households without any Direct Debit commitments are potentially missing out on. Whilst Direct Debit may not be suitable for every household’s circumstances, the savings that can be achieved do make a compelling argument for switching payment method.
“Saving money is just one of the many benefits of Direct Debit, it also helps people to spread the costs of many regular household bills, save time and take more control of their finances. People can rest assured that payments will be made on time, every time with Direct Debit, ensuring they don’t get penalised for late or missed payments.”
Direct Debit is a safe and reliable payment method protected by the Direct Debit Guarantee. This is a consumer safeguard which is adhered to by all the banks and building societies that operate under the Direct Debit Scheme and offers a full and immediate refund if an error is made, advance notice of any changes to payment dates, and gives the consumers the right to cancel a Direct Debit at any time.
More information about how to save money through Direct Debit can be found at: www.thesmartwaytopay.co.uk.
Footnotes:
(1) Bacs Family Finance Tracker, 2009. 12% of British households do not have a Direct Debit commitment, but could elect to pay this way. There are 25,400,000 households in Great Britain. 12% of 25,400,000 equates to 3,048,000 households. 3,048,000 x £235 = £716,280,000.
(2) Household money savings of £235 have been formulated as follows(3): Sourced June 2010.
| House |
Saving (£) |
| Combined gas and electricty |
100.00 |
| Broadband/Digital TV |
60.00 |
| Landline telephone |
18.00 |
| Magazine subscription |
21.42 |
| Mobile phone |
36.00 |
| Total |
235.42 |
(3) Bacs Family Finance Tracker, 2009. 12% of British households do not have any Direct Debit commitments, but could elect to pay this way.