Guarantee access to free ATMS, Sunak told

RISHI SUNAK was last night told by Tory MPS that he must take tougher action to ensure everyone has access to ATMS that offer free cash withdrawals.

The Prime Minister was urged to step in after it emerged that a quarter of free cash machines have been axed in the last four years.

Senior backbenchers warned during a debate in the Commons that millions of vulnerable Britons still use paper money for daily essentials.

Labour said ministers have a “duty” to protect those reliant on cash and it would pass laws setting out a minimum level of service for banks. Kit Malthouse, a former education secretary, said the Government “can’t sit there like King Canute” and try to hold back progress while consumers are voting with their feet.

He insisted it was “a bit of a myth” that the elderly struggle with contactless technology.

He also pointed out the proportion of payments made in cash fell from half to just 17 per cent between 2010 and 2020. Andrew Griffith, the Economic Secretary to the Treasury, said the Government was “putting the industry on notice” over its performance.

He told MPS that if banks do not improve coverage by themselves, ministers will have powers to force them to provide more free ATMS.

“I am acutely aware of the very real concern around this topic,” he said during a debate on the Financial Services and Markets Bill.

“It’s not acceptable when people have no option but to travel large distances or to pay ATM fees to access their own money.

“I’m being very clear that it is our expectation that the industry will deliver on this important issue for our constituents.

“And if not this Bill gives any future government the ability to mandate that.”

Mr Griffith said the Government was legislating to protect access to cash “for the first time in the over 1,000-year history of the Royal Mint”.

The Bill will require the Treasury to “publish a statement of policy” about the state of access to cash and the level of service it expects.

That document is expected to include a minimum distance people have to travel to be able to withdraw and deposit money for free.

If banks fail to improve their coverage, ministers could instruct the Financial Conduct Authority, the City watchdog, to enforce that limit.

But many Conservative MPS want ministers to go further now, with 21 backing an amendment by Labour MP

Siobhain Mcdonagh calling for new legislation. Andrea Leadsom, a former Commons leader, sought reassurances “the Government is entirely behind free access to cash and will make that clear in the guidance”.

David Mundell, an ex Scottish secretary, said the UK “cannot just simply move in an unstructured way to a cashless society”.

“As we move forward we have to move forward at the pace of the slowest in our society,” he told the Commons.

He asked for a commitment that “if it becomes clear people do not have free access to cash across the UK, the Government will proactively intervene to make sure that they do”.

Anthony Browne, the MP for South Cambridgeshire, raised concerns that increasing numbers of shops now only accept card payments. “There’s no point in people having access to free cash [machines] if they can’t spend it on essential items,” he said.

Five Conservative MPS, including Sir Iain Duncan Smith, a former party leader, Priti Patel, an ex home secretary, and Douglas Ross, head of the Scottish Conservatives. voted for the Labour amendment, which was defeated by 271 votes to 206.

Ms Mcdonagh said that providers of ATMS that charge for withdrawals “really are in the money” as banks remove free services.