John McFall MP chaired the Working Group on free cash machines
The 600th new free cash machine in a low-income area is now up-and-running, according to LINK, the operator of the UK’s cash machine network.
Cash machine operators in the UK have now surpassed the national target to install 600 free-to-use cash machines in low-income areas. The target was agreed by the ATM Working Group in December 2006.
1.5 million people living in low-income areas in the UK are now benefiting from 601 new free cash machines. A further 94 cash machines are under contract and will be installed soon.
John McFall, who chaired the ATM Working Group, said: "Hundreds of low-income communities now have instant access to their money, without having to pay for it. With average charges at pay-to-use machines between £1.50 and £2.00, the new ATMs will save hard-pressed families millions of pounds.
"I am delighted that the cash machines target has been surpassed. I would like to congratulate LINK as well as all the participating banks and cash machine operators.
"Bank accounts and savings are no longer optional. In today’s society, they are an absolute necessity for everyone. Increasingly, those who are financially excluded are also socially excluded. It is therefore vital that we work to ensure that everyone, including those on low incomes, have access to essential financial services."
Edwin Latter, Managing Director of the LINK ATM Scheme, said: "The ATM Working Group chaired by John McFall helped us to agree with consumer groups and government exactly where free-to-use cash machines were most needed. Thanks to the willingness of LINK card issuers and ATM operators to contribute, we have been able to make a real difference to hundreds of communities and over a million people."
The cash machines target was agreed following a report by the ATM Working Group, which comprised UK banks, cash machine operators and consumer groups. The group itself was formed following concerns raised over cash machine charges by the Treasury Committee, also chaired by John McFall, in 2005.
The group agreed to instate a new 'financial inclusion premium,' funded by the card-issuing banks, as an incentive to install free ATMs in low-income areas. This premium has proven so successful that in around 50 cases, the ATMs no longer need funding from the scheme.
The group also agreed to improve the screens on fee-charging ATMs, to ensure that customers are aware of whether they must pay to use the machine. Since implementing the new signage, LINK has received no further complaints from customers who were unaware they would be charged for making a withdrawal.
Over 1,700 areas were identified by the Working Group as targets for the new free cash machines. Thanks to these 601 new machines 1,082 of these target areas are now served by a free-to-use ATM. LINK continues to work to ensure that free cash machines are provided in as many of these areas as possible.