ATM closures mount due to pandemic cash freeze

ONE in eight banks and cashpoints have shut down during the pandemic due to staff shortages, social distancing and the falling demand for cash.

Thousands of people have lost access to their local bank, post office and ATM, often meaning they have to travel more than three miles for cash.

Data from around 19,000 banks and building societies, as well as 60,000 cash machines, has shown that 12 per cent have seen closures and the Government faced calls last night to act swiftly to protect access to cash, particularly for pensioners.

Caroline Abrahams, Age UK’S charity director, said: “The scale of bank closures and redundant ATMS during the pandemic marks an acceleration of a trend that was already of real concern.

“In the places affected, lack of access to cash must not become permanent because otherwise we will be creating ever more ‘cash deserts’.

“It remains the case that significant numbers of older people rely on cash.

It’s an essential back up if other ways to pay don’t work for them.

“Before the pandemic, the Government committed to legislating to protect access to cash for as long as people need it,” she said.

“The Government must move forward with concrete plans – which may well require legislation – to ensure that cash remains readily available.”

The data, from the Financial Conduct Authority and the Payment Systems Regulator, showed that last week of June saw 28.4 million cash withdrawals, down almost half on last year.