The Payments Council has withdrawn its plans to abolish cheques by 2018, promising to keep them “for as long as customers need them”.

In a statement, Payments Council chair Richard North confirmed that the organisation had bowed to public pressure. “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.”

Meanwhile, in a letter to the Council’s charity and voluntary sector liaison group, senior consultant Helen Doyle wrote: “Given the continued confusion and alarm that the target date on cheques is causing customers and organisations alike, the Payments Council has decided that cheques should continue for as long as customers need them and the target for possible closure of the cheque clearing in 2018 has been cancelled.

“Obviously this marks a major change of direction for the Payments Council's work. Please be reassured that the focus on innovation in payments will continue.”

The Council added in a Q&A document that it cannot make guarantees about what will happen in future as this will “be driven by businesses and customers”, adding that cheques are already being used less and less each year.

The decision to withdraw cheque guarantee cards, which came into effect at the end of last month, still stands.

Campaigners welcome the news

One organisation which had campaigned heavily on the issue is NCVO. Policy manager James Allen said: “‘This is a really positive, common sense development and we are glad that the Payments Council have taken the sector’s views on board.

“We had heard a lot of concerns from our members about the impact that abolishing cheques would have on fundraising charities and other organisations across the sector.”

Caron Bradshaw, CEO of CFDG, also welcomed the news, but added: “While this is clearly good news for all those charities set to be affected if cheques were withdrawn, we hope that this will not mean work to develop more secure, cost effective and efficient forms of payment stops. 

“We understand that the Payments Council will continue to work to encourage innovation in methods of payment and we will work with them and the banks to ensure charity interests are represented.”