New ATM provision across the UK
Published On 13 December 2006
Over 600 free-to-use cash machines are to be installed in Britain's poorest areas following a "groundbreaking" deal between banks, cash machine operators and the government. The plan, worked out by a parliamentary working group, will see the new machines operating on the Link ATM network. Leading banks and building societies will offer a cash incentive to ATM operators to put machines in poor areas.
"This is a huge step forward in our campaign for financial inclusion," said John McFall, chairman of the ATM working group and the Treasury select committee. Free cash machines in poor areas were "vital for economic activity in those areas", he added.
Mr McFall noted that today's report calls for "crystal clear transparency" when customers are charged for withdrawing cash.
Economic secretary to the Treasury Ed Balls said the agreement would "extend free access to cash to those who need it the most and enable all customers to distinguish immediately between charging and non-charging machines".
Consumer group Which? has welcomed the announcement, but said it was "imperative that these new measures are sustainable". "Banks and building societies must remain committed in the long-term to keeping this scheme going," said senior policy adviser Pula Houghton.
Nationwide building society, which worked as part of the ATM taskforce, estimated that consumers would pay £260 million to withdraw their own money from cash machines in 2007. Nationwide director Jeremy Wood said today's announcement was "great news for consumers".
There are currently 59,000 ATM machines in the UK, nearly half of which charge between £1.50 and £3 for a cash withdrawal.
