Post Office pulls down the shutters on cheque books

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Post Office customers wanting to cash cheques or use them to buy popular services are being told to find other ways to pay.

Despite banks backing off plans to scrap the cheque, the Post Office has said anyone wanting to renew their passport or buy monthly bus tickets must pay by cash or card.

The Post Office blamed the closure of the cheque guarantee scheme on June 30 for its change of policy. But campaigners are urging it to reconsider.

Oliver Morgans, financial services expert at Consumer Focus, says: 'This is disappointing — many consumers still rely on cheques.

'This move may cause inconvenience and frustration, particularly for older people, who use cheques more often. We would like to see the Post Office - a responsible retailer - revisit this decision.'
People can no longer cash a cheque at the Post Office unless they have a disability and permission from their bank.

In 2009, the Payments Council, a panel comprised mainly of banks, announced that cheques would be scrapped by 2018. But last month it made an abrupt U-turn and said that cheques would be available as long as people want them.

Now campaigners fear banks and retailers are still hoping to phase out cheques by stealth, because they are four times more expensive to process than electronic payments.

The Post Office's decision means customers wishing to pay for Meals On Wheels, National Lottery tickets, travel insurance, EDF pre-payment meters, or a fishing licence will no longer be able to pay by cheque. However, those wishing to pay for financial services, bill payments or certain government services, such as a driver's licence, can still write out a cheque.

A spokesman for the Post Office says: 'We are confident we can help affected customers manage this change.

'As over 95 per cent of cheque guarantee cards are also debit cards, we will encourage customers to use this payment method.'