Deprived areas hit hard as free ATMs disappear
FREE-TO-USE cash machines are vanishing more quickly in deprived areas than in affluent ones, according to consumer campaigners who are pressing Chancellor Sajid Javid to implement a cash guarantee.
Which? said its analysis shows nearly one in 10 (9%) free cashpoints across the country had closed or switched to fee-paying during a 17-month period after changes to how the network is funded were set out.
The consumer group used data from ATM network Link to make the findings.
Reductions to the fees card issuers pay to ATM operators have sparked fears that “cash deserts” could be created, with bank branches also closing. Which? said analysis found poorer communities have been hardest hit by the changes, with those most reliant on cash and who can least afford to pay for withdrawals facing charges or being forced to
JENNY ROSS
travel to access money for free.
Looking just at the number of free ATMs converted from free to feecharging, Which? found that the most deprived areas across the UK had seen a reduction of 979 free-touse machines – equivalent to 5.7% of their ATM network.
The least deprived areas lost 223 free cashpoints - equivalent to 3.9% of their network of machines.
Which? said Birmingham Ladywood, which has a large proportion of its ATMs in deprived neighbourhoods, saw the biggest losses, with a reduction of 47 free machines.
This was followed by Bristol West, which lost 40, Manchester Central, which lost 36 – and Belfast South and Cardiff Central, which lost 34 each.
Which? chief executive Anabel Hoult and Natalie Ceeney, chairwoman of the independent Access to Cash Review, have written to Mr Javid, calling on the Government to take action to guarantee people’s ability to access and pay with cash.
Jenny Ross, Which? money editor, said: “We know that people in more deprived communities tend to rely heavily on cash, so it’s deeply concerning that those who can least afford it are being hit with the extra burden of hefty fees to access their own money as free cashpoints close at an alarming rate.
“The Government and regulators must urgently get a grip on these rapid changes to the cash landscape and guarantee people across the UK can continue to access this important payment method for as long as it is required.”
Ms Ceeney said: “Six months ago, we presented recommendations of what steps should be taken to make sure no one was left behind.
“With ATM numbers declining, cash use dropping, and more and more shops not accepting cash, our fear is that the UK will fast go cashless, leaving millions of people behind.”
John Howells, chief executive of Link, said: “Which?’s report rightly points out it is the less well-off and more remote parts of the country that are at growing risk of losing free cash access.”
Those who can least afford it are being hit with the extra burden of hefty fees to access their own money