James Duddridge, Member of Parliament for Rochford and Southend East, provides an update regarding the Government’s position on the potential end of the cheque system.
The Payments Council had previously announced the target date of 2018 for phasing out cheques. Regrettably, this announcement was made without an assessment of the costs and benefits, or a plan or timetable for managing the process, or an indication of what alternative payment instruments might need to be created. These things are currently now being developed.
Mark Hoban MP, Financial Secretary to the Treasury has stated that that any alternative system will need to replicate the flexibility and ease of use of cheques, while improving processing times, and be cost effective.
James said
“Unfortunately there has been a great deal of uncertainty and alarm, particularly among those who are dependent on cheques as an ongoing method of payment where other forms of payment are unsuitable. This includes the elderly and housebound, schools, clubs and charities, and small businesses.
“I want to assure the residents of Rochford and Southend East that the Government is monitoring the progress of the cheque replacement programme and is considering whether it may need to intervene to protect vulnerable individuals and businesses if there is any threat that cheques may be withdrawn without suitable alternatives being put in place.
“The Payments Council are keen to hear as many views as possible in relation to the cheque replacement programme and I urge anyone concerned to contact them and ensure their concerns are taken into consideration.”
ENDS