An influential committee of MPs has launched an inquiry into the proposed abolition of cheques, which under current plans will be phased out by October 2018 if adequate alternatives are developed.

The Treasury Select Committee said it intended to look into the advantages and disadvantages of ending the payment method. However, many people, including groups representing older people, have expressed concerns about the move. The Payments Council accepted that cheques were still used for payments to sole traders, small businesses, clubs, charities and schools.

"Customers are not likely to see any immediate change as the target date is still a long way off," said Paul Smee, (PICTURED) chief executive of the Payments Council. "There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement," continued Smee, concluding: "But the real challenge lies ahead if we are going to be comfortable to wave goodbye to the cheque, which undeniably occupies a unique place in British culture."

In coming to its decision last December, the board of the UK Payments Council set the 2018 date in a bid to encourage the advance of other forms of payment. But now the Treasury Committee has said that it wants to study the impact of the abolition of cheques on particular groups in society as well as what alternative payment systems are being developed.