The use of cheques has been falling for many years and this is expected to continue. In light of this the Payments Council (an industry body that sets strategy for the payments industry) announced in 2009 that it had set a provisional target date of October 2018 to close the cheque clearing system.
The Payments Council took the decision to set a date because, unless cheque decline is actively managed, there is an increasing likelihood that cheque facilities would be withdrawn before adequate alternatives had been developed for all groups of customers.
A final decision on closure will not be taken until 2016, and this will depend on whether suitable replacement payment methods have been established.
Winchester & Chandler's Ford MP Steve Brine said: "Understandably, many groups of cheque users have expressed concern to me over the closure of the cheque system. I know that many people locally heavily use cheques, such as small businesses, the charitable and voluntary sectors and older people, and my postbag and inbox certainly back that up.
"The Government believes that cheques should not be phased out until suitable alternatives are in place, particularly for those who are most dependent on them. I therefore welcome the Payments Council's announcement of a new set of commitments which are intended to reassure cheque users that their interests will not be ignored.
"The Government welcomes these commitments, which include a clear statement that cheque facilities will continue to be available to customers until the alternatives in place, including a paper based system, are available, acceptable and widely adopted."
Pictured; Charities like Hampshire and IOW Air Ambulance rely heavily on cheques
More information...
The full list of commitments is accessible at www.paymentscouncil.org.uk.
The Payments Council is keen to hear as many views as possible. It can be contacted via [email protected].