Cheltenham MP joins bid to save cheques
Cheltenham MP Martin Horwood has backed a campaign to save the humble cheque.
The Liberal Democrat signed up to a cross-party motion amid concerns that high street banks are planning to stop using the traditional form of payment.
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Cheltenham MP Martin Horwood
The campaign has been backed by consumer group Which? and Help the Aged, which says older people will suffer if the cheque is withdrawn.
Mr Horwood said: "This will be very convenient for banks, but abolishing cheques will cause great inconvenience to many people who rely on them as a means of payment – particularly elderly people.
"This development is most unwelcome in its own right, but taken together with the news on bank charges, they amount to an insult to the British public."
The Payments Council, which oversees payments in the UK and is funded by banks, announced earlier this month that all cheques would be axed by October 2018.
But opponents believe most banks will stop issuing cheque books sooner to cut costs.
They say the move will limit customers' choices and could kill off even more post offices and bank branches.
A spokesperson for Which? said: "We oppose setting an end date for phasing out cheques until there are cheap and safe alternatives in place for people who rely on them.
"Prematurely getting rid of cheques will make life very difficult for many of the most vulnerable, including the elderly, the housebound and those who don't have access to the internet."
A spokesman for Gloucestershire Age Concern said: "Our fear is that setting a date will give the green light to banks and retailers to withdraw cheques even earlier than 2018‚ as some already have.
"It is vital that before cheques are phased out the Payments Council ensures there is a practical‚ safe‚ paper-based alternative in place which serves the needs of this group.
"Chip and pin is problematic for many older and housebound people and we know 6.4 million over-65s have never used the internet. Without cheques we are very concerned that people will be forced to keep large amounts of cash in their home, leaving them vulnerable to theft and financial abuse.
"We are being asked to take on trust that the banking industry will create an alternative people can use, but new forms of payment can take a long time to develop and no action has been taken to date."
6 Comments
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by Peter, Cheltenham
Thursday, December 31 2009, 9:03PM
“Only cheques I've had to pay in during the last year were a tax rebate and a dividend from Lloyds TSB. If the government and banks still need them they will survive.”
by Liz Monk, London
Thursday, December 31 2009, 1:09PM
“Can we have a petition to stop the banks doing this. Whilst they are not used as frequently as before, they are a valuable method of payment ie. to small businessmen and to children and grandchildren as gifts. Also with the way the utility companies abuse their power over direct debit, I know of more and more people who have ditched direct debit in favour of paying by cheque.”
by George, Chelt
Tuesday, December 29 2009, 5:49PM
“I don't agree with the phasing out of cheques. As a small business, it is often more convenient for my customers to pay me by cheque if they don't have time to pop out and get money. I expect there is a fee of somekind for the chip and PIN system - which is yet another cost to be added to an already struggling small business and I am sure there are more out there with my sentiments. Good luck to Martin Horwood for trying to do his best by us. Let's give him our support!”
by NB, Cheltenham
Tuesday, December 29 2009, 12:42PM
“I work with a Gloucestershire based charity, as treasurer, and if cheques are phased out it will make our fundraising so much more difficult. Events such as charity auctions where impulse purchases are all part of the fun, and the cheque book comes out, few of these fundraisers will have access to chip & pin machines, so the charities will lose. Similarly donations through the post, cash is not an alternative, again, the charities will suffer.
The banks must think again!”
by stoptheworldiwanttogetoff, Gloucester
Tuesday, December 29 2009, 9:42AM
“Sorry, I don't understand the problem with cheques?
Surely it's more inconvenient to go into a bank with say ten thousand pounds in fivers, than it is with a piece of paper?
I don't know how long we have had cheques, Wik says the Romans started them, but what I do know is that it is a system that works.
We all know the pitfalls, and so are prepared to wait for clearance etc.
Also, I am surprised the banks want to get rid of them, as they earn huge amounts of interest from them.
Anyway, 'Driver, stopthew...............'”