144/07
12 December 2007
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 neighbourhood. 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.
| Region | Live ATMs | Under contract | Grand total |
|---|---|---|---|
| London | 14 | 3 | 17 |
| South East | 13 | 11 | 24 |
| Eastern | 10 | 2 | 12 |
| South West | 10 | 9 | 19 |
| East Midlands | 22 | 17 | 39 |
| West Midlands | 31 | 19 | 50 |
| Yorkshire & the Humber | 53 | 29 | 82 |
| North East | 37 | 31 | 68 |
| North West | 48 | 23 | 71 |
| Scotland | 61 | 22 | 83 |
| Wales | 38 | 37 | 75 |
| Northern Ireland | 0 | 3 | 3 |
| Grand total | 337 | 206 | 543 |
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.
Notes for editors
1. Following concerns raised by the Treasury Select Committee in March 2005 about the impact of ATM charges on lower-income groups and the transparency of charges at ATMs, the Parliamentary Working Group on ATMs was established at the instigation of HM Treasury under the chairmanship of John McFall. The Group´s report is available.
2. All major cash machine operators in the UK - including banks, building societies and independent cash machine operators - are part of the LINK ATM network. About 36,000 free ATMs currently account for 96% of cash withdrawals, with the remaining 4% of withdrawals made at some 27,000 charging machines across the UK. Banks and building societies currently pay an 'interchange fee' when machines operated by other companies are used to access their accounts. As part of this initiative to locate free ATMs in low income areas a financial inclusion premium, a 30-50% premium per transaction, is paid to cash machine operators establishing ATMs at sites with lower customer-use.
3. Then Economic Secretary Ed Balls and John McFall wrote to Members of Parliament and local authorities in December 2006 with a further update in March 2007 asking where to places free ATMs, with a significant number of suggestions received.
4. 337 bank machines are now in operation, and LINK is continuing to work to realise identified potential ATM sites, especially those within outstanding target areas. Full details on progress made to date, can be found on the LINK website; including a breakdown for every constituency: LINK ATM locator
5. As part of the Government's commitment to ensuring that everyone has access to financial services, The Action plan for financial inclusion for 2008-11, launched recently by Economic Secretary Kitty Ussher, announced Government funding of £135 million for initiatives to promote financial inclusion including increasing the availability and awareness of home contents insurance for low-income people and free face-to-face money advice. More information is on the Action plan.
6. Media enquiries can be directed to:
Zoë Anderson, HM Treasury Press Office: 020 7270 4420
Media Office, House of Commons: 020 7219 2003
Edwin Latter, LINK ATM Director: 014 2335 6389
7. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558, or by email to public.enquiries@hm-treasury.gov.uk
8. This press release and other Treasury publications and information are available on the Treasury website. If you would like Treasury press releases to be sent to you automatically by email you can subscribe to this service from the press release site on the website.