MPs slam decision to abolish cheques

Published:  17 March, 2010

LONDON:  Senior MPs have accused the banking industry of engineering a "fudged" decline of cheques without considering the impact on users.

MPs on the Treasury select committee were told that many small businesses could lose out following the Payment Council's plans to end the use of cheques by 2018.

In December 2009, the board of the UK Payments Council announced that cheques will be phased out by October 2018, but only if alternatives are developed. The Council stated that it had decided to set the date for proposed abolition so far in advance to encourage the development of other forms of payment.

The select committee's chair, John McFall, said it was "beyond belief" that cheques were in terminal decline, adding that it was really a "fudged, managed decline" on the part of the Payments Council and the industry.

He pointed out that cheques were used to make payments worth £1.4tr in 2008, and were still the second largest payment type after automated credits. Even if cheque usage declined by 40% between now and 2018, he said, there would still be about 600bn written every year.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

At Arco, we are an industry specific recruitment consultancy, providing sales and managerial staff Nationwide to Merchants, Distributors and Manufacturers of Building Materials within the Construction Sales Sector. Priding ourselves on our unparalleled customer service and hard work, we offer a fresh, innovative and personal approach to recruitment specifically designed to meet our clients’ needs and candidates’ skills.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.