Over 600 new free cash machines in low income areas

A ground-breaking deal has today been struck between a Parliamentary Working Group, chaired by John McFall MP, including leading banks and cash machine operators and HM Treasury to provide over 600 new non-charging cash machines in Britain’s lower-income areas.

The ATM Working Group also agreed that “crystal clear” signage should be placed prominently on every charging cash machine in the country to show customers that they will be charged when making a cash withdrawal.

Economic Secretary to the Treasury, Ed Balls and Chairman of the Treasury Select Committee as well as the ATM Working Group, John McFall, hailed the deal as a breakthrough in their efforts to help people in lower-income areas to start up bank accounts, and ensure that they can access those accounts as easily and cheaply as possible.

Ed Balls said: “We have been making good progress in encouraging more people to open bank accounts. But alongside that, we must make it easier for people to access and manage their accounts. I welcome the commitments made by banks and other cash machine operators to increase access to free cash machines.

“Today’s agreement will 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.”

John McFall said: “This is a huge step forward in our campaign for financial inclusion. The banks, building societies and cash machine operators who have worked with us on this plan deserve to be congratulated for their constructive and innovative work, which will mean a huge expansion in access to free cash machines for people in low income areas, vital for economic activity in those areas.”

To incentivise the placement of over 600 new free-of-charge machines operating on the LINK ATM network, Britain’s leading banks and building societies will pay a premium to cash machine operators to set up and maintain ATMs at these new sites, to compensate them for the lower machine-use expected in these areas.

John McFall said: “This financial inclusion premium is the first example of such an innovative approach anywhere in the world. It will use the market forces that already shape the deployment of free cash machines to achieve and sustain an important public policy objective.”

A number of suitable sites for free cash machines have already been identified, and Ed Balls and John McFall are today writing jointly to MPs and local authorities across the country to seek their advice on more potential sites where cash machines are both needed and could be suitably sited.

The ATM Working Group is also asking the Government and local authorities to consider how planning permission and rates policies could be amended to take into account the importance of installing new free cash machines in communities that currently lack access to such facilities, and to encourage private and public sector premises to provide sites for them.

The ATM Working Group has also agreed that a strict set of rules will apply to those ATMs which continue to impose a user charge to make it absolutely clear in prominently-placed, large-type signage above and on the screen of each machine that a charge will be applied when withdrawing cash.

John McFall said: “We want customers to see at a glance whether a machine is free or charging. Crystal clear transparency is what is required here – prominently placed signs in suitable large type. The new recommendations include the provision of clearer on-screen information, together with larger and standardised external signage. The new rules, properly implemented and enforced, should provide a robust and enduring standard which satisfies all stakeholders.”