Following a public grilling by David Ruffley MP in the Treasury Select Committee on 15th June, the Payments Council has made a spectacular U turn in its plans to phase out cheques by 2018. On 12th July, the Payments Council announced that they were to withdraw their plans and continue with the use of cheques for 'as long as their customers need them'.

David Ruffley MP said:

'I am pleased to see that these plans have been shelved. After my head to head clash with Richard North, Chairman of the Payments Council, on 15th June in the Treasury Select Committee, I am glad that he has gone away and reflected on the importance of cheques for all of us.

He assumed- arrogantly - that most people used online or phone methods of payment which patently they do not. Moreover, he did not know that more than one billion cheques were written by individuals or businesses last year alone.

This Payments Council U-turn is a victory for Middle Britain. All eyes will now be on banks to ensure that they don't try to start hiking charges for cheques.'