Islington residents urged to opt for 'no fuss' direct debit on Council Tax

Do you make your monthly council tax installments via direct debit, or by individual payments? Islington council has reported an increase in the number of households paying this way, and is trying to encourage more to follow suit.

The Council's is keen to sign up more residents to automatic payment schemes , as these can save organisations substantial amounts of money as they do away with the need for additional handling fees.  

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, so it's easy to see why they are calling for more Direct Debit customers.

On the face of it this seems like a no-brainer: not only does it save the council (and by extension, all of us) money, switching to DD makes bill payment easier, less time-consuming and more secure for us taxpayers.

But what is stopping people from paying by direct debit in the first place?  In some cases, it's a simple case of avoiding the small amount of paperwork needed to set up the payments. In others, it's to do with a fear of not being able to pay the bills.

And in others, particularly in multiple-occupancy households, there is confusion over who should take responsibility for the direct debit: members of bigger groups often prefer to pay individually than have one person trust the other parties to re-imburse him or her for the money due.

If you're avoiding setting up a direct debit for one of these reasons, it might be worth re-examining your concerns and getting a direct debit set up. If not for the reasons outlined above, then to be in the chance of winning a large cash prize.

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.

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."

If all these arguments (and the possibility of a very welcome windfall!) convince you, then go and have a look at how you can sign up at  www.islington.gov.uk/council/counciltax/directdebit or call 020 7527 2633.