Save our cheques

Losing the ability to write a cheque is something that is worrying a lot of people from charities, very small businesses, those who write cheques as presents, and many more.  That is why Cllr Alan Lewis put a formal motion to tonight's Council meeting.  We were pleased that he got all party support, what he said is printed below, followed by the actual motion.  Making the point that it was the only way that we could give to support the Mayor's Charity - here he is (cannot think why it insists on being sideeways - picture is right way up !) signing a cheque to him - making the point in a pointed way !  We expect our MPs to vigorously back the campaign.

Cheques have been in use for over 300 years in the UK and in 2009 they were used to transfer £1.9 trillion. Across the country 1/3 of all people still regularly use cheques and 75% use the cheque facility with their bank accounts. In December 2009 the Payments Council – representing the major high street banks – set a target date of 2018 for the closure of central cheque clearing. Apparently the banks stand to gain £200 million a year by phasing out cheques. But I understand that cheques are a bit of a pain to bank staff; but most jobs have a task that people don’t particularly enjoy doing but they just have to get on with it. As they are still a popular way of making a payment I would hate to think that one of the reasons for their abolition was just because bank staff finds them an inconvenience.

Apparently, in 2018 when cheques are due to be phased out there will still be 2 billion of them issued every day and they will be used to transfer £600 billion every year. The Payments Council mentions providers of alternative payment methods such as PayPal. This can only be accessed on the internet and the decision will have major ramifications for disabled, elderly and housebound, as well as charities and small businesses. 64% of people aged over 65 have never used the internet.

The Save Our Cheque campaign is backed by the consumer group Which?, the Union Unite, Age UK, the RNIB, the Federation of Small Businesses and the Institute of Fundraisers.

Although nationally this is a LibDem initiative there is nothing politically controversial about it and I would like to see in this Council, cross party agreement and support the motion.

The actual motion passed says :

This Council notes with concern that high street banks are planning to stop accepting cheques despite protests from consumer groups and businesses.
This Council also notes with concern that in December 2009, the Payments Council agreed on behalf of the major banks to scrap cheques in 2018.
This Council notes that nearly four million cheques are still being written each day and that many people still prefer to pay for goods and services in this way.
This Council also notes that many people and organisations including the elderly, businesses and charities, would be seriously affected as a result and that 126 MPs from all parties have signed Early Day Motion 258 calling for the banks to reconsider their proposals.

This Council further notes that on November 2nd 2010, David Ward MP presented a 10 minute rule bill to the House of Commons which would place a duty on the City Regulator, the Financial Services Authority, to ensure that cheques stay in use until suitable alternatives are found and that the Bill will be debated in June 2011.

Therefore this Council calls upon the Chief Executive to write to our MPs asking them to vigorously lobby support for the bill and also to write to the Prime Minister expressing this Council’s concern about the plans to abolish cheques and urging him to provide Parliamentary time to ensure that the Bill is passed into law.