More free cash machines in low-income areas
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Issued 17 July 2008
Over one million people are benefiting from 419 new non-charging cash
machines installed in low-income areas throughout the UK in the last 18 months,
Economic Secretary to the Treasury, Kitty Ussher MP and Treasury Select
Committee Chairman, John McFall MP announced today.
This substantial progress is the result of a joint initiative between HM
Treasury and the ATM working group, chaired by John McFall.
Kitty Ussher and John McFall announced that:
- 419 new free access cash machines are now operating in low income areas;
- A further 143 locations for free access cash machines have been identified
and are planned for end- 2008;
- These 562 free cash machines will benefit around 1.3m 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:
"This initiative means that over one million people in low income areas no
longer have to pay to get hold of their money. This is real progress in our
campaign for access to free cash machines in neighbourhoods up and down the
country and a step forward for financial inclusion.
When people have to pay to get their hands on their own money it excludes
them from the financial system and these real costs are often borne by those
who can least afford it. These new cash machines will help individuals on low
incomes to access financial services as easily and cheaply as possible.
I am also pleased that the ATM industry had made real steps to improve its
signs on cash machines so that it is absolutely clear at a glance whether the
machine is free or charging.
When this initiative is completed and all of the free-to-use machines are
in place, around two million low-income Britons will benefit - a fantastic
result and I would like to thank all the parties involved for their efforts in
make sure this happened."
John McFall said:
"In today's society, financial exclusion can lead to social exclusion, as
it makes worse the problems that people in low-income areas face. It is vital
that every family can access the basic financial services, such as bank
accounts and cash machines, which many of us take for granted. This
free-to-access ATMs initiative has allowed 1.3 million people in low-income
areas to benefit - an outstanding achievement.
A number of the new cash machines have proven 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 efforts put in by all those involved in the initiative -- in
particular, LINK and the cash machine operators -- have been commendable. The
Treasury Select Committee has worked hard to keep financial inclusion on the
agenda for many years now, and I am delighted that, with the help of the
Government and the financial services industry, this hard work is paying off."
LINK, the operator of the UK cash machine network, 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 also praised the work of LINK to update screen
information and make changes to external signage at the majority of pay-to-use
cash machines. This ensures that charging machines meet good practice standards
for "at a glance" signage, enabling customers to quickly and easily distinguish
between charging and non-charging machines.
Notes
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, “Cash machines - meeting consumer needs
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 37,500 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. The 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. Four hundred and nineteen non-charging 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:
www.link.co.uk
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 by Economic
Secretary Kitty Ussher in December 2007, 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.
6. 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. Nine of the new cash machines
proved popular enough that they now no longer require funding from the scheme.
|
Region |
Live receiving premium |
Live but ineligible for premium |
Live, eligible but no claim |
Total live ATMs |
Under Contract ATMs |
Total ATMs |
| East midlands |
25 |
8 |
3 |
36 |
6 |
42 |
| Easter |
4 |
6 |
- |
10 |
3 |
13 |
| London |
7 |
9 |
- |
16 |
3 |
19 |
| North East |
37 |
13 |
5 |
55 |
15 |
70 |
| North West |
40 |
18 |
3 |
61 |
21 |
82 |
| Northern Ireland |
- |
- |
5 |
5 |
3 |
8 |
| Scotland |
60 |
4 |
- |
64 |
21 |
85 |
| South East |
9 |
5 |
- |
14 |
8 |
22 |
| South West |
6 |
6 |
1 |
13 |
6 |
19 |
| Wales |
34 |
10 |
3 |
47 |
27 |
74 |
| West Midlands |
19 |
18 |
2 |
39 |
11 |
50 |
| Yorkshire & the Humber |
42 |
11 |
6 |
59 |
19 |
78 |
| Total |
283 |
108 |
28 |
419 |
143 |
562 |
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© Crown Copyright. Material taken from HM-Treasury.
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Article Published/Sorted/Amended on Scopulus 2008-07-24 07:51:07 in Economic Articles
