The ‘alarming’ decline of free cash machines costs the poor
PEOPLE in some of the most deprived areas are paying up to £2 for each cash withdrawal while numbers of free ATMs plummet, a watchdog has found.
Which? consumer group said freeto-use machines were vanishing at an alarming rate. Campaigners are warning that we risk sleepwalking into a cashless society.
At least five million people, including the most vulnerable, rely on hard cash with 16 per cent struggling to get access and accepted in shops, the Financial Conduct Authority said.
Vanishing
Which? has called for a “clear blueprint” on the future of cash, and wants the Government to ensure access to paper money. Gareth Shaw, head of money, said: “Everyone should have reasonable access to their own money without having to pay.Yet our research shows free cash machines are vanishing at an alarming rate – often in areas where people need them most.
“ATMs are only one piece of the jigsaw – the Government needs to swiftly set out its plans for the future of cash.”
He said legislation was required so the industry and regulators can work with the Government to ensure cash is protected as a form of payment for those who have no other option.
Two districts of Birmingham, among the poorest 10 per cent of areas in England, have seen 40 and 44 per cent cuts in free-to-use ATMs since 2018.
Both have seen a 59 per cent rise in pay-to-use machines.
Natalie Ceeney, of the Access to Cash Review, said: “We are failing to spot the warning signs and are sleepwalking into a cashless society.
“More people are comfortable with card and digital payments, but not everyone is – in fact millions aren’t.
“We urgently need the promised legislation to protect cash.”