Banks to fund free cash points for all
‘These measures on their own are unlikely to be enough to stem the tide of ATM closures across the UK’
BANKS are to provide funding to ensure every high street has a free cash point, it has been announced.
Concern has been mounting that parts of the country are losing access to free cash as traditional ATMS close, coupled with the rise of machines which charge for use.
An effort to combat the rising ATM losses has now been launched by Link, the cash machine network, which has pledged to create new cash points on high streets threatened by the closure of hubs such as Post Offices.
The machines will be paid for through funding from all the UK’S main banks and building societies, with five already planned for areas where the problem is especially stark.
However, consumer experts have warned that the scheme is unlikely to do enough to ensure free cash is accessible to all without the Government also intervening.
It comes after Notemachine, one of the country’s largest ATM operators, announced in April that it was preparing to charge for withdrawals on thousands of its machines.
Link’s first free-to-use ATM will be installed in Durness in the Scottish Highlands, where there is said to be an “unfulfilled need for cash access specific to the local economy”. Residents currently must drive an hour to the nearest free cash point, Link said.
Locations will be prioritised if the use of cash is not already in decline due to the rising popularity of card transactions. The strongest drop in cash use has been in London and parts of southern England, according to a poll.
An independent “access to cash review”, funded by the organisation, said the UK was not ready to transition to a fully cashless society and steps should be taken to help cash users.
It found around 17 per cent of the population would not be prepared for the demands of a society without cash.
John Howells, Link chief executive, said: “Link is determined to defend free access to cash across the UK in the face of very rapidly declining cash use.
“Link will take further steps to ensure that the free ATM footprint is safe in Scotland and extend its commitment to cover every high street.”
Only around 10 of the UK’S 6,500 retail centres have no cash points but it is feared this number could grow with the increasing prevalence of digital transactions. Similar efforts have been launched to save 1,000 unprofitable ATMS from closure in rural communities reliant on cash, again subsidised by banks.
Gareth Shaw, head of money at the consumer group Which?, said: “This long-overdue action on cash machines is hugely welcome but these measures on their own are unlikely to be enough to stem the tide of ATM closures that has left communities across the UK struggling to access cash.
“The Government’s new access to cash strategy group must urgently explore all options – including legislation – to ensure a robust system is in place to preserve free access to cash for as long as people need it.”