UK MPs question abolition of cheques
The Payments Council’s proposed abolition of cheques in 2018 has been met with considerable scepticism by a group of UK MPs, who have heard evidence from charities regarding the impact the move could have on older people.
Last December, the Payments Council met to approve a phased eradication of the aging payment method and agreed that by October 2018, alternative methods would be in place and no more cheque payments would be accepted.
Leading the attack on the Payments Council’s proposition was John McFall, chairman of the Treasury select committee, who told them to return to the committee with a verified cost analysis to back-up their claims that the end of cheques would save businesses £750 million and banks £200 million.
Jane Vass, of Help the Aged and Age Concern, put forward her views that the move could pose considerable security risks to the elderly, forcing them to hoard large amounts of money in their homes, or entrust others with personal details in order to make financial transactions on their behalf.
Vass went on to state that the elderly were the highest users of cheques and that 21% of people think moving from the method will be a “major problem”. She largely backed the move to abolish cheques, but maintained that better alternatives needed to be sought.
Teresa Perchard, of the Citizens Advice Bureau, echoed Vass’ concerns, stating that 340,000 people still receive benefit cheques in the post and that a number will still be in circulation in 2018.
In 2000 cheques represented a quarter of all non-cash transactions but, less than a decade later, they accounted for only one in eleven. Major retailers such as Sainsbury’s, Morrisons, Asda and Tesco have already stopped clearing cheques, and it is thought that many more will follow suit over the coming months.
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