Cash machine report ‘is great news for the poorest people’

Banks and other cash machine operators have recommended measures to get more free cash machines into low-income areas which is ‘great news for the poorest people’ says national charity Citizens Advice.

The cash machine taskforce, set up by the Treasury and chaired by John McFall MP, has taken on board several recommendations made by Citizens Advice, also a taskforce member, in a report earlier this year, such as improving signage on fee-charging machines. The Citizens Advice report, Out of Pocket, showed that people in low-income areas are hit hardest through a lack of free machines, forcing them to pay to get at their money.

Every year thousands of people are hit with average charges of £1.50 per withdrawal, but some fee-charging cash machines charge as much as £3.00. In 1999 virtually all cash machines, known as ATMs (Automated Teller Machines) in the UK were free, but of the 58,000 cash machines now operating, 40% charge a fee regardless of the size of withdrawal.

Citizens Advice particularly welcomes the report’s recognition of the need to speed up identifying sites and securing planning permission for free machines, and the report’s call for a more joined-up approach involving central Government, local authorities and local groups. At present it can take months to identify and secure sites in communities that need free cash machines.

Local Citizens Advice Bureaux have already been working with HSBC to find suitable sites in low-income or isolated communities. The first free cash machine to be installed at a site identified by a local CAB is being switched ontoday in a community in Warkworth, Northumberland. Warkworth is a rural community with a high number of pensioners who would find it almost impossible to travel to the nearest free machine several miles away.

Teresa Perchard, Director of Policy at Citizens Advice said: “Not having free access to money hits poorer people hard, forcing them to travel miles to the nearest free machine or to pay to access their money. Finding sites and getting planning permission does seem to be a stumbling block in some areas, so we need this joined-up approach with banks, local authorities and local groups all working together. The process must be speeded up so that thousands more people can benefit.”

“Introducing standardised and clear information on machines that do charge fees is very good and something we called for after our survey showed that many people didn’t know they were being charged for withdrawals. Customers must know exactly how much they are paying when taking out money. “

“It is important now that the report’s recommendations are fully taken on board by the Treasury. We want to thank John McFall MP, chair of the group for all his work, and also LINK for their work on the report and in getting agreement from their members on the way forward.”