Cheques Important for Many Older People

Age UK has voiced concerns over the demise of the cheque guarantee card which makes payments more difficult for many older people, mainly including over 65s and over 75s who may not be comfortable with the internet, mobile phones and modern technology in general.

Indeed it was found from research undertaken by Age UK that only 35 per cent of over 65s have household internet. (This is compared to 74 per cent of the population as a whole.) Perhaps not surprisingly, only 56 per cent of over 75s use mobile phones. Only 2 per cent of over 65s use a smartphone. However, this is not set in stone as we all change as we age and at the same time technology is changing too.

The charity has supported Financial Advisor's Save our Cheques campaign. This resulted in a decision last month by the Payments Council to keep the cheque which had been set to disappear by 2018.

Age UK has consequently written to the major UK banks and building societies to ask them what steps they are taking to ensure that cheques will continue to be honoured without the security of the cheque payment card, which was scrapped at the end of June.

The charity has undertaken research which shows that many older people, especially those over 65 and over 75, would have considerable difficulty in paying their bills and getting their shopping, thus necessitating keeping a stash of cash at home, a danger in itself. Otherwise, elderly people would have to divulge their PIN to others, also risky as this would leave them vulnerable to theft or financial abuse.

Research from Age Uk indicates that:

10 per cent of over 75s have other people shopping for them regularly.

10 per cent of over 75s had someone else to withdraw cash for them for daily spending money.

In fact only 82 per cent of over 65s withdraw their own cash from cash machines. They need cash for repaying people but it is a problem to get it...

Michelle Mitchell, charity director of Age UK, said: “Confidence in cheques was seriously undermined when the guarantee card was abolished. We need to know there are definite plans in place to restore trust in them. Otherwise, cheques will simply be allowed to wither away and their demise will be blamed on lack of demand."

Ms Mitchell added that cheques are necessary for older people who find them invaluable, especially as banks and building societies have not come up so far with any suitable alternative. It is therefore essential until that happens that cheques do not simply fade away as they do afford older people some financial independence.

The Save Our Cheques Campaign fought on behalf of many charities and independent financial advisors asserted that were cheques removed it would restrict the way they do business and would affect pensioners and small businesses the hardest. Consequently, the Payments Council Board which had previously said it would phase out cheques by 2018 has now announced it would retain cheques for as long as there is a demand for them.

The Payments Council has said it would focus on providing innovative but secure forms of payment to suit all customers.

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