Half of UKs money machines ‘face closure’

Half of Britain’s money machines may shut inside two years except banks are pressured to help them, specialists have warned.

A few of the UK’s 41,000 free community may very well be shut, together with 4,000 machines in rural and poorer communities, as they develop into too costly to run, based on the estimates.

The state of affairs was raised on a name with regulators, lenders and different teams final week about how you can protect entry to money for many who want it.

The hunch in money withdrawals because of the pandemic has intensified the pattern of individuals switching to digital funds. Because the begin of final yr, 3,300 free-to-use money machines and 431 financial institution branches have closed, Which?, the buyer group, thinks.

The “cataclysmic cliff edge” may result in the collapse of money being obtainable throughout the nation, based on an insider to the talks.

Newest information from the Monetary Conduct Authority reveals that 5 million individuals rely on money and 16 per cent of the inhabitants are discovering it tough to entry money. One downside is that in areas the place free ATMs shut, individuals have little selection however to make use of paid-for ones, which cost £2 a withdrawal, punitive for some individuals.

The chancellor promised laws to guard entry to money throughout the nation in final yr’s price range, however little progress has been made. There have been months of talks between the Treasury, the FCA, banks, the Put up Workplace, the Hyperlink money machine community and client teams, however they haven’t led to any concrete plans.

On the decision between members of the group final week, some banks mentioned that they’d help the Hyperlink community just for a yr and the Put up Workplace banking settlement, which permits individuals to entry their accounts through the Put up Workplace, solely till subsequent yr.

Client teams need banks to be pressured by the federal government to pledge a five-year deal to permit the Put up Workplace to put money into its banking providers and to permit Hyperlink to handle its nationwide community, together with commitments to maintain machines in protected areas.

Gareth Shaw, head of cash at Which?, mentioned that with no timetable for motion, “the federal government has left the way forward for a community that hundreds of thousands of individuals depend on in limbo. And not using a long-term technique, its pledge will probably be undermined if companies are capable of take business choices within the interim that erode the supply of money even additional.”

There are additionally fears about the way forward for a scheme to permit individuals to entry money at nook outlets with out making a purchase order. A pilot is working in 13 outlets in 4 areas nevertheless it requires laws to be rolled out extra extensively. If this week’s price range doesn’t make a brand new pledge to create the principles, the scheme may crumble, specialists mentioned.

Half of UKs cash machines ‘face closure’