Call to protect free access to cash
The Chancellor is being urged to prevent free access to coins and notes from being lost forever, ahead of next month’s Budget.
Which? has written to MP Rishi Sunak, branding the industry’s response to the crisis as “lucklustre” and calling for legislation that protects cash for as long as it is needed.
THE CHANCELLOR is being urged to prevent free access to coins and notes from being lost forever, ahead of next month’s Budget.
Which? has written to Richmond MP Rishi Sunak, branding the industry’s response to the crisis as “lucklustre” and calling for legislation that protects cash for as long as it is needed.
Which? says the UK’s ATM network is on the verge of collapse, with 9,000 free cash machines and 1,200 bank branches closing in the past two years.
Central Leeds has seen the joint eighth biggest fall in freeto-use and pay-to-use cash machines in the UK in the same period, losing 39 ATMs.
Meanwhile there are just 38 ATMs in Penistone and Stocksbridge, the joint ninth lowest number of free-to-use cash machines in the country.
Which? said a quarter of the cash machines that remain now charge a fee. Skipton and Ripon are among places that have seen the number of pay-to-use ATMs rise sharply – up 167 per cent in two years.
Their letter added: “Understandably, millions of people are unhappy about this. They rely on cash. For many of them, cash is the only option.
“If things carry on as they are, cash as we know it will cease to exist in just two years. Yes, digital payments are good, but right now the UK isn’t ready to go cashless.”
The letter also cautions: “If you don’t act now, free access to our own cash will soon be gone forever.”
Which? said that while a “request an ATM” service launched by network Link has received 274 requests so far, a tool launched by the consumer group supplied Link with 3,160 demands for a free cashpoint.
It comes as HSBC announced 27 branch closures this year, including Sheffield Broomhill. Nine in 10 customers’ contact with the bank is now completed via the telephone, internet or smartphone and 99 per cent of cash withdrawals are made at an ATM.
The stormy weather has affected ATM use in recent weeks as many people have stayed indoors.
John Howells, chief executive of Link, said: “Cash use is declining rapidly. At the start of 2020, we have seen an average drop in transactions by 12 per cent on the previous year. In fact, recent weeks have seen volumes drop by as much as 20 per cent on 2019. These huge reductions are placing a significant strain on the viability of the UK’s cash infrastructure and while we are delighted with the response to our community request scheme to date, we will soon need Government support to protect the wider cash system.”
The Post Office and the Federation of Small Businesses are supporting moves to protect the cash network.
FSB national chairman Mike Cherry said: “We need to see a guarantee which enables those who want to use cash to continue doing so – especially in remote and rural areas – alongside a resilient wholesale cash infrastructure to ensure that the use of cash remains viable as its presence declines.”
But Mr Cherry said small firms should be allowed to go cashless if that fitted their needs and those of their customers.
A UK Finance spokeswoman said the banking and finance industry recognises the importance of ensuring cash remains free and widely available for those who need it and has introduced several measures to achieve this – specifically including more remote and rural areas. She said: “There is no ‘one size fits all’ approach however and understanding the needs of local communities is critical.”
39
The number of free-to-use and pay-to-use ATMs which have been lost in Leeds Central in the past two years.