I've just stumbled across this Select Committee report on banking giving some information on the type of payments made in 1998. I was surprised that over one third of DDs are for insurance -
" In 1998, BACS processed 2.9 billion items. This comprised 1,736 million direct debits, 935 million customer credits and 234 million standing order and other Member to Member payments. On a peak day BACS processes over 40 million items.
Over one third of direct debits are for the payment of life and other insurance premiums. Utility billing is another major application:?last year over 300 million direct debits arose from the payment of gas, electricity, water or telephone bills. Direct debit use has become increasingly commonplace among the general population, with nearly 70 per cent of adults in the UK now paying one or more of their regular bills in this way.
The payment of wages, salaries and company pensions are the largest credit applications, accounting for 570 million payments in 1998. Use of BACS in these areas is well established. Over 90 per cent of company pensions are paid by BACS, as are around 9 in 10 of all salaries. Another major credit application is the payment of state benefits, with around half of new recipients of child benefit and state retirement pensions now opting to be paid directly into their account. The Department of Social Security is the largest single user of BACS, inputting over 135 million payments last year."