"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," Paul Smee, the council chief executive, said in a statement.

The use of cheques has fallen drastically in the past 10 years as more consumers transfer money electronically, by direct debit or with debit and credit cards.

Last year, around 3.8 million cheques were written every day in Britain, compared to a peak of 10.9 million in 1990, the council said.

It costs about one pound to process every cheque.

"The next generation probably won't even have a chequebook," said Addy Frederick, a spokeswoman at the payments council. But while many UK supermarkets, high street retailers and petrol stations have stopped accepting cheques, they are still a popular form of payment among elderly people, many of whom find the idea of using automated cash machines intimidating. "Chip and pin is problematic for many older and housebound people and we know 6.4 million over 65s have never used the internet," said Vicky Smith, a spokeswoman for the charity Age Concern. "Without cheques, we are very concerned people will be forced to keep large amounts of cash in their home, leaving them vulnerable to theft and financial abuse." Harriet Harman, deputy leader of the ruling Labour Party, said that authorities must take care not to discriminate against the elderly in making their decision. "We need to look to the future but make sure that older people don't suffer as a result," she told parliament. (c) Reuters