Access to free cash machines in low-income areas nears target

An initiative to increase free access to cash machines in low income areas throughout the UK has made substantial progress in the past year announced the Economic Secretary to the Treasury, Kitty Ussher, and Treasury Select Committee Chairman and chair of the ATM Working Group, John McFall, today.

Kitty Ussher and John McFall announced that:

337 new free access cash machines are now operating in low income areas;

A further 206 locations for free access cash machines have been identified and are planned for the first half of 2008;

These 543 free cash machines will benefit around 1.2m residents who as a result will not have to pay charges or to travel outside their community to withdraw cash; and

Work continues to ensure there is a free access cash machine in every identified target area.

Kitty Ussher said: "The Government is committed to ensuring that everyone has access to financial services and, with the excellent progress made to date, more than one million people in low income areas will benefit from not paying to access cash machines in their neighburhood. When this initiative is fully realised and all of the free-to-use machines are in place, around 1.5 million low-income Britons will benefit - a fantastic result.

"As ATM operators continue to improve the signage of cash machines, customers will know at a glance if they will be charged to withdraw cash. I welcome the importance industry has given to this agenda as it is key to developing a transparent ATM network in the UK."

John McFall said: "This initiative has been tremendously successful and I am delighted that it has impacted to the extent that it has, which is to the benefit of so many people in low income areas throughout the UK. A great deal of hard work has gone into this and everyone involved in the working party deserves great credit for their input.

"The outcomes have been remarkable and the feedback from these communities makes it clear that people really appreciate what's been done here. The new free to use ATMs are saving them significant sums of money they could ill afford to spend. The next step is to ensure that every ATM machine displays clear signs to customers informing them whether the machine is one that charges or is free to use."

Operator of the UK cash machine network, LINK, has been coordinating efforts to place the cash machines in low-income areas, and enforcing the rules on cash machine charging and signage.

Kitty Ussher and John McFall welcomed work by LINK to update screen information and make changes to external signage at the majority of pay-to-use cash machines, ensuring that charging machines meet good practice standards for "at a glance" signage. This enables customers to quickly and easily distinguish between charging and non-charging machines. Checks are now being made by LINK to ensure these changes have been made to every charging machine in order to meet the Industry-set end of December deadline.

As an incentive for operators to set up and maintain cash machines free-of-charge, a 'financial inclusion premium' compensates cash machine operators for the expected lower cash machine-use in these areas. This is funded by the cardholders' banks and building societies.

Five of the new cash machines have proved so popular that they now no longer require funding from the scheme - proof that these machines were much needed, and are making a real difference to the communities in which they are located.

The Government is encouraged by the concrete progress achieved so far and looks forward to a further update on efforts to deliver free access to cash machines in low income areas in the New Year.