Member News
By Gerrard Clark - 23rd June 2011
New research shows that the UK is not ready for the phase-out of cheques.
Age UK revealed that 73 per cent of the elderly still use cheques, while 63 per cent of users of all ages would find it a problem if they were no longer available.
According to the study, 'The Way We Pay: Payment Systems and Financial Inclusion', the banking industry needs to wake up to the reality that cheques are an essential service.
Cheques are not obsolete, argued Age UK:
"Gifts, catalogue shopping, utility bills and charity donations were all important payments that participants often preferred to make by post, using cheques."
Findings also highlighted the importance of cheques to the elderly.
Recent innovations in payment options (such as ATMs and internet banking) exclude older people. A complete phase-out of cheques would exacerbate this problem, said Age UK.
"All new payment systems should be designed inclusively – that is, to meet the needs of the widest possible range of users... there is currently still no satisfactory, inclusive alternative to cheques."
Simple things such as paying someone back for shopping, or delegating authority, would become more difficult without cheques.
One older person said: "I couldn't get out because of the snow… a friend got cash for me and I gave them a cheque back."
In an analysis of other countries, Age UK found that older people seem to have similar preferences and barriers to transactional banking.
"Countries in which cheques are no longer used have alternative paper-based systems and appear to have high cash use."
No 'silver bullet' innovation has been found to replace cheques and paper money.
Age UK is calling for the government to recognise payment services as an essential right, saying: "Payment systems should not be exempted from the age discrimination provisions of the Equality Act 2010."
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