MPs criticise cheque strategy
A CommonsTreasury Select Committee report recommends that the Payments Council must not have the power to abolish cheques, following news last month that cheques will be reprieved until at least 2016.
The committee says in a report published today that “The industry-dominated Payments Council should no longer have the unfettered power to decide the future of cheques, or other payment methods that directly affect millions of people”
It says the Payments Council was wrong to announce the abolition of cheques in December 2009 and should consider reinstating cheque guarantee cards. The council previously announced that cheques would be phased out by October 2018 claiming they were in terminal decline, and abolished the cheque guarantee card scheme from 1 July.
It also recommends that banks should be required to tell customers cheques will continue to be in use for the foreseeable future.
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Cash or cheque?
Many of the small businesses I see cannot justify the cost and inconvenience of a chip & pin reader and monthly Streamline charges, and therefore take payment in 2 forms - cash or cheque.
I cannot imagine that HMRC would have been too happy for many of these businesses to suddenly have become 'cash only', perhaps with the odd bit of barter thrown in, especially given their past attitude to existing cash based businesses.
At least cheque payments leave a paper trail, unlike a roll of used notes.