Payments Council offers advice for managing payments during the postal strike

16 Oct 2009

• National postal strikes planned on Thursday 22nd October and Friday 23rd October

• Payments Council advises consumers to take advantage of convenient ways to pay bills, such as banking online

In response to yesterday’s announcement by the Communication Workers’ Union confirming the national postal strikes planned for Thursday 22nd October and Friday 23rd October, the Payments Council is advising all UK consumers to consider how the postal strike may affect their regular payment commitments.

Customers should make plans for any important bills, invoices or cheque payments that are expected by post. Anyone who is due to post a cheque during the strike should also check they are not going to miss a payment deadline and be penalised as a result.

Customers can check timescales with their supplier or by looking at their last bill - it might also be possible to do this online. Suppliers usually offer customers a number of payment options that are usually listed on the back of the bill along with their timescales for receiving payments. Options might include paying by card over the phone, online at their website or at your local bank or post office. Alternatively, you may decide to set up a regular Direct Debit, or if you bank online or on the phone, you might be able to make a one-off payment.

Paul Smee, Chief Executive of the Payments Council, said:

“It’s worth taking five minutes to work out what bills, invoices or cheques you might be expecting in the post and to consider whether you want to take any action to make alternative arrangements for any of them. Increasingly you can check and pay bills online or if you haven’t already you can set up a Direct Debit.

“This national postal strike will arguably impact bill payers less than the strike that took place in October 2007. Since 2007, cheque use for paying regular bills has fallen by 27% as more of us now use Direct Debits and other forms of automated payment. There has also been a 52% increase in the use of online banking for paying regular bills.

“Last year Direct Debits were used for 76% of all personal and household bill payments. However, customers who don’t yet use Direct Debits should make sure they use an alternative form of payment to avoid receiving any late fees as a result of the strike action.”

Top tips for paying bills:

1. Keep a note of when your credit card statements or other regular bills are due. If you think a bill may be due you should check with your supplier

2. If you have already sent a cheque to pay your credit card bill and are concerned about it getting there in time, speak to your credit card company

3. If your bill is due during the period of the strike, look at other payment options:

• pay online – if you bank online or by phone you can set up a transfer or you can log onto your credit card company’s site and pay by debit card

• pay by cash or cheque at your bank or local post office

• Consider setting up a Direct Debit to pay at least the minimum payment on your credit card bill. This can usually be done simply over the telephone or online

Paying bills – facts and figures:

• 23% of credit card bills are paid by cheque, 28% by Direct Debit and standing order and 26% via phone or online banking
• When paying regular bills by cheque, only 9% are posted while the rest are made in the Post Office, at your bank or in other locations
• Paying regular bills by cheque has fallen by over 50% over the last eight years
• Last year 22 million adults used online banking when managing their main current account
• The number of household and personal bill payments has risen by almost a quarter over the last five years
• 90% of mortgage, TV, satellite and internet bills are paid by Direct Debit; 70% of utility bills are paid by Direct Debit

Over the last eight years:

• The use of Direct Debits has increased by 52% (1,826 million to 2,781 million payments)
• The number of standing order payments has increased by 32% (331 million to 437 million payments)
• The use of cash payments has fallen by 37% (1,040 million to 656 million payments)
• Cheque use has fallen by 57% (315 million to 137 million payments)

ENDS

For further information, contact the Payments Council press office on 020 7711 6316 or press@ukpayments.org.uk

NOTE TO EDITORS

The Payments Council is the organisation that sets strategy for UK payments. It has been established to ensure that UK payment systems and services meet the need of users, payment service providers and the wider economy.

The Payments Council has three core objectives: to have a strategic vision for payments and lead the future development of co-operative payment services in the UK; to ensure payment systems are open, accountable and transparent; and to ensure the operational efficiency, effectiveness and integrity of payment services in the UK.

The Payments Council is a membership organisation funded by its members, with an independent chairman. It was set up in March 2007 and currently has 27 members; on the Board sit 11 banking representatives and four independent Directors as well as the chairman. The principal UK payment schemes – Bacs, CHAPS and Cheque & Credit Clearing Companies, LINK Scheme as well as the UK Domestic Cheque Guarantee Card Scheme, the Belfast Bankers' Clearing Company Limited and the Currency Clearings – have entered into a contract with the Payments Council which sets out their respective rights and duties towards each other. Under the contract, schemes are required to report regularly to the Payments Council Board: the Board is able to make decisions that are binding on scheme members in order to implement its strategy.

The UK Cards Association offers advice for cardholders during the postal strike