As an example of how charities will be affected, the RL Glasspool Charity Trust, an organisation that gives money to people suffering hardship, made about 3,300 small grants totalling £860,000 last year, of which more than half were payments by cheque.
The charity has written to the Payments Council pointing out there are 2,200 similar trusts making payments worth £300m a year to individuals.
“Clearly the withdrawal of cheques may well cause charities like ourselves some considerable difficulties,” the letter says.
