The Payments Council has scrapped plans to phase out cheques by 2018. The plans were slammed by the likes of charities and politicians, leading the Treasury Select Committee to reopen its probe.

Richard North, chairman of the Payments Council comments: "It's in the DNA of the Payments Council to consult and listen to all those people who actually make payments and use cheques. Listening to over 600 stakeholder groups, working with the banks and following our appearance before the Treasury Select Committee, we have concluded we should reassure customers that the cheque is staying."

“Over the last two years we have learnt a great deal about what is important to our many stakeholders and we are really grateful to all of those groups and individuals who took the time to talk to us and help us reach this decision. We will use what we’ve learnt to keep improving existing systems, as well as introducing innovation, so that customers benefit from 21st century ways to pay. Innovation must be at the heart of what we do,” he adds.

Simon Morrison, director of marketing and communications at the Institute of Fundraising, has welcomed the move. "We are delighted that the Payment Council has disposed with the proposed end date for cheques. This will make a world of difference to a lot of our members, especially as some charities currently receive up to 80 per cent of their funding by cheques. For a large cohort of donors cheques are a preferred method of donation. However, the next generation of secure payment still needs to be investigated by the Payments Council," he says.

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