Elderly Assured "Cheques Safe ... For Now"

BY ISAAC FANIN

Elderly people in Bradford could have to make cash payments or rely on other people if the plan to phase out cheques by 2018 is put in place. New research by Age UK shows nearly three-quarters of elderly people rely on cheques as a method of payment.

Today is the final day that the cheque guarantee card system operates, meaning that the question of whether cheques are relevant has been once again raised.

UK Payment Council Spokesman, Mark Bowerman said: “In terms of the cheque guarantee card scheme, our research showed that 91% of people aged sixty-five and over have little or no concern about the closure of the cheque guarantee system.

"The guarantee card system has been in place for over forty years but Bowerman said that it had become dated and was especially difficult to use.

“Hardly anyone was using guaranteed cheques anymore and of the small minority that were most of them where getting the rules wrong so the guarantee function was actually invalid when the cheque was actually presented” he said.

Lucy Melenczuk, Financial Policy officer for Age UK, the leading charity for a older people believes that until a suitable alternative is created, getting rid of cheques would be a big mistake,

“People are still using cheques and they need them. It doesn’t really matter about the total number of cheques from the older person’s perspective, if it’s the only way you can pay for something then it is an essential service” she said.

“We hear from people who give out their pin number so they put themselves at risk of financial abuse. We think it’s going to push people into risky behaviour and really restrict they’re access to goods and services.”

A study conducted by Age UK suggest that nearly one in five of those over 65 often use other people to draw cash out for them, while only 43% said that using a cash machine in the street was their preferred method of drawing cash.

Mark Bowerman says they will look at all available options when making a decision on the use of cheques,

“One of the roles of the Payment Council is to protect the vulnerable and that’s why this project is making sure that there are alternatives to the cheque by 2016.

“If we get to 2016 and people are still using cheques, the cheque will stay with us” he said.


Age UK's Lucy Melenchuk:

Lucy Melenchuk by BCB News