Urgent: Survey on plans to abolish cheques

THE PARLIAMENTARY Treasury Select Committee has reopened its inquiry into plans to phase out cheques after being inundated by public concerns on the matter.

The proposal by the Payments Council (who speak on behalf of the major banks) to do away with cheques by 2018 has come about because cheque use has fallen by 40% in the UK since 2004. Electronic forms of payment, it is claimed, is cheaper saving both time and processing costs, the benefits of which can be passed onto customers.

Small businesses, charities and voluntary sector organisations fear that the move will be detrimental to them and increase the admin burden.

Civil Society Fundraising Magazine has joined with nfpSynergy to put together a quick survey to get a feel for how abolishing cheques might impact on charities. If you are a not-for-profit organisation and have 10 minutes to spare, then please Complete the Survey  by Wednesday 4th May at the very latest.

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Top Council Pay and Consultancy Fees - Subjects for Freedom of Information Requests

THE FREEDOM OF INFORMATION (FOI) ACT gives you the right to ask any public body for all the information they have on any subject you choose. Unless there’s a good reason, the organisation must provide the information within 20 working days or provide you with an explanation of why this is not being done. The times when councils and governments conducted everything behind closed doors should be at an end! The FOI is a useful tool for ensuring public bodies are - and remain - accountable for their actions.

ANYONE CAN MAKE A REQUEST. FOI is not restricted to journalists or campaigning charities – there are no restrictions on the age or nationality of those requesting information. Applicants do not have to indicate why they want the information.

The website WhatDoTheyKnow is a very public way to make Freedom of Information requests. The request is made in public on the website, and the responses and other correspondence can be tracked and shared easily.

A look at recent requests on WhatDoTheyKnow brings to light some very revealing and useful information:

TOP COUNCIL PAY: After recent controversies about top council officers receiving high salaries while the rest of us suffer austerity cuts then most people will be surprised to discover (FOI request March 2010) that Nigel Pearson, the East Riding Council's Chief Executive is paid an annual salary of £170,067 for providing "clear strategic vision and inspirational leadership" for the authority.

HULL COUNCIL CONSULTANCY FEES: A request for information on payments made to a consultant working for Hull City Council (FOI request January 2011) revealed that between 4 January 2010 and 31 December 2010 one consultancy firm was paid £231,818.39 in total - a daily rate, including fees, of £900. 

Further information provided revealed that up to £1.6m had been spent by Hull City Council on 'Professional/Consultants Fees' in November 2010. Interestingly, the information on expenditure over £500 provided by the Council for December 2010 no longer included the sub-description 'Professional/Consultants Fees'.   The amount spent on such service areas will undoubtedly be of interest to those who are protesting that authority's £50m cuts programme!

Further information on using Freedom of Information requests effectively can be found on the personal blog of journalist and head of multimedia for Trinity Mirror Regionals, David Higgerson.

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Did you know... that cheques are to be abolished in 2018?

THE 31st OCTOBER 2018 is the date on which payment by cheque will end. Cheques, which have been used to make payments instead of cash for centuries, will cease to be used by the banking system from this date.

Cheque - a thing of the past?

Cheque use has fallen by 40% in the UK since 2004, although over 4 million of them are still issued everyday. But the payment method is considered outdated by the Payments Council who speak on behalf of the major banks and financial institutions. They see electronic forms of payment as cheaper saving both time and processing costs, the benefits of which can be passed onto customers.

However, the abolition of cheques may have a detrimental affect on small businesses and charities claims Yorkshire MP, David Ward. The MP has moved a Bill in Parliament to ensure that cheque facilities continue after 2018. The Federation of Small Businesses argue that cheques provide an easy-to-track audit trail, are easy to reconcile, require minimal administration, and they are convenient for customers. The abolition of cheques would increase the admin burden on small businesses.

Charities receive a significant proportion of their income via cheques. Whilst many major national charities will be able to adapt to electronic forms of payment, it is believed that smaller local charities reliant on volunteers will suffer.

Those who will find it hardest to adapt to a cheque-less society, are those who will be elderly in 2018. AGE UK believe that 64% of elderly people do not use the internet, and whilst that figure is expected to fall by 2018 there will still be a significant proportion who will revert to using cash for transactions rather than the internet. The fear is that elderly people start keeping large volumes of money in their houses. The 'cash under the mattress' becomes the pot from which to pay for day to day necessities and outside help. Elderly people then become targets for burglars and other criminals.

David Ward MP's Bill to prevent cheque abolition will be heard in Parliament in June 2011.

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