London councils save £2.5m through direct debit campaign

Local authorities in London have reportedly saved a combined total of £2.5 million through joining a campaign to encourage residents to pay their council tax by direct debit.

The campaign, launched in 2010, encourages residents to pay through direct debit instead of with cash or checks, reducing processing costs for councils.

Last year residents were offered the chance to with £25,000 if they paid by direct debit, which helped 16 London authorities save a combined £450,000.

Dawneth Perry, Bacs' local authority sector specialist, which runs the campaign, said: “At a time when budgets are under continued pressure, there has never been a better time to look at the potential savings on offer through increasing the number of residents and businesses paying by Direct Debit.”