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Earning Avios for paying your council tax – and other utilities

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Your council tax bill for 2017/8 will be dropping through your letterbox in the next few days. Earning Avios or other points by paying your day-to-day bills is something that a lot of people ignore.

Unfortunately, because of the huge range of utility companies, it is difficult to write a detailed post on paying utility bills by credit card. I have been doing this for years, though, when I can. There are a couple of things always worth remembering:

Some utility companies keep quiet about their willingness to take credit cards. Thames Water bills do not mention that they accept Visa or Mastercard credit cards. They presumably want to avoid paying the processing cost if they can. Yet, head over to the Thames Water website and you’ll see that Visa and Mastercard credit cards are accepted – with NO surcharge.

Some companies do add a surcharge for paying with a credit card. You need to do the maths to see if it is worthwhile.  When we had Sky for our broadband, there was a 50p credit card surcharge.  Depending on what card you pay with, these small surcharges may be worthwhile.

Most interesting, though, is this one: It seems, very occasionally, that some companies who do NOT take credit cards do let the odd one slip through. My local authority is Kensington & Chelsea. They are adamant that only debit cards are accepted for online payment – the website says:

“we accept British-issued debit cards for Mastercard and Visa and Switch, Solo, Visa Electron, Delta and Maestro Debit cards”

However, for the last five years, I successfully used my bmi Mastercard (RIP) or my Marriott MasterCard to pay my bill.  This is very attractive for me as there is no surcharge at all.

It doesn’t work with all cards. I once tried using a Tesco Mastercard and the system recognised, correctly, that it was a credit card and not a debit card. I have no idea why some cards work – presumably there is a database somewhere that tells the payment system which cards are credit cards, and some must have been missed off.

It is all very odd, when you think about it.  Because of the cut taken by the card processor, my council presumably receives less money than it is expecting.  I am credited with having paid the full amount, however, and the council clearly never bothers to try to reconcile the difference.

If you have any interesting stories about settling utility bills on points-earning plastic, please post them below.

PS.  There is an interesting loophole in using PayPoint to pay bills.  Most Co-Op stores have a PayPoint terminal which you can use to settle council tax or other bills.  For some odd reason, the Co-Op has never clamped down on the use of credit cards with PayPoint.  Reportedly (I’ve never tried it myself) you can use this facility with an Amex or other credit card and the staff are unlikely to stop you.  Depending on your council or the utility involved, you may need to request a PayPoint payment card first which can be scanned in.


British Airways BA Amex American Express

How to earn Avios from UK credit cards (September 2021)

As a reminder, there are various ways of earning Avios from UK credit cards.  Many cards also have generous sign-up bonuses!

There are two official British Airways American Express cards. Both have increased sign-up bonuses until 2nd November 2021:

British Airways BA Amex American Express card

British Airways American Express

10,000 Avios for signing up, no annual fee and an Economy 241 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

40,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:

Nectar American Express

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

60,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies. This card has a limited time offer of 60,000 Avios when you sign up:

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

60,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.

(Want to earn more Avios?  Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)

Comments (150)

  • Roger says:

    Is there any way to pay council tax using Amex credit card with using council’s sort code and account number?

    I know this may sound weird but not sure when you cancel card, Amex always says that make sure you cancel all your standing order, subscription etc. So just trying to figure out how can one setup payment from credit card with a payment going to a sort code and account number?

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