Potential new system to replace cheques

With cheques potentially due to be phased out of circulation by 2018 UK banks are considering introducing a new paper based method of payment

The plans for cheques to be removed was only recommended once a suitable replacement could be determined, and the decision has already raised concerns from various charities, the elderly and consumer groups who all feel strongly that whilst the number of people still using them is in the minority, they are reliant on them as they struggle with alternate methods and electronic alternatives.

The payments council have been quick to stress that they will not be leaving consumers "high and dry" by rushing to any changes.

The use of cheques has been in steady decline over the last decade but the Council have stressed that 2018 is only a target date and that the final decision will not be taken until 2016 at the earliest. If a viable alternative has not been devised by this time the date could well be pushed back.

Michelle Mitchell, charity director at Age UK, said: “The announcement does nothing to reassure older people that an acceptable alternative payment system will be in place before cheques are withdrawn. Cheques should remain available to all customers until an acceptable alternative which meets the needs of all who rely on cheques is in operation.”

It has been a suggested that those who wish to continue using cheques could well have to pay for the service as usage continues to decline at the rate of 10% a year. Neil Duncan-Jordan, of the NPC, said: “We oppose any suggestion that banks might start charging people for using cheques. It’s ridiculous to want to cut out older people. It’s rank ageism. Eight out of 10 elderly people have never been near a computer, and don’t want to pay for everything by credit card.

“This is against everyone’s interests, apart from the banks, who want to get rid of cheques because they claim they cost too much to process.”