400 charge-free ATMs for poor areas

400 charge-free ATMs for poor areas

More than 400 charge-free cash machines have been installed in deprived areas during the past 18 months, the Government has said.

A total of 419 free ATMs have already been installed in low-income areas and a further 143 will be put in by the end of this year.

Once all of the cash machines have been installed, around 1.3 million people will be able to withdraw their money without having to pay a charge or travel outside of their community.

The Treasury said work was continuing to ensure that people in all of its identified target areas had access to a free ATM.

The cash machines are paid for through a "financial inclusion premium" of 10p on every withdrawal, which is paid by the cardholders' banks.

The move is part of a joint initiative between the Treasury and the ATM working group, which is chaired by head of the Treasury Select Committee John McFall. The group was set up following concerns raised by the Treasury Select Committee about the impact of ATM charges on lower-income households.

Economic Secretary to the Treasury Kitty Ussher said: "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."

She added that the ATM industry had also made "real steps" in improving the signage on cash machines to make it clear to consumers whether or not they would be charged to use the machines.

Mr McFall said: "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."