Call for UK government to protect access to cash
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North MP Jamie Stone has called on the UK government to protect access to cash for his constituents as part of the Covid-19 recovery plan.
The Liberal Democrat politician joined a cross-party group of 37 MPs concerned that closures of bank branches and free-to-use cash (ATM) machines could make it difficult for some people to get their money.
The MPs wrote to Chancellor Rushi Sunak to highlight their fears and urge him to bring forward promised action to address the problem. They would like the Chancellor to make the move as part of his coronavirus recovery plans.
Mr Stone, who has campaigned against the loss of bank branches and free cash machines, added his voice to calls from consumer groups and business organisations, urging the Chancellor to reverse the cuts made to the interchange fee paid by banks to ATM providers so customers can access their cash.
The cuts have saved the banks £200 million since July 2018, while some 10,500 free-to-use cash machines – around 19 per cent of the free network – have disappeared across the UK in the past two years.
Mr Stone and his colleagues say a reversal of the cuts, which have made many cash machines impossible to run, would unlock a commitment from NoteMachine – the UK’s second largest ATM operator – to put more than 2500 of its machines back to free use. If the rest of the industry was to follow, up to 6000 machines would return to free-to-use.
The MPs say coronavirus has highlighted the importance of cash for vulnerable people and stress that ATMs operated by NoteMachine which now charge a fee dispensed almost £1 billion post-Covid-19. When free, prior to the coronavirus, they were dispensing £5.5 billion.
After signing the letter, Mr Stone said: "Cash is a lifeline for millions and is a vital budgeting tool. The ongoing Covid-19 pandemic has brought this into stark realisation, as many need others to food-shop on their behalf while they self-isolate and as millions of people across the UK lose out on income.
"Despite this, our cash infrastructure is at risk of collapse as the pandemic has made what was already a fragile ATM structure almost unsustainable as people are unable to access cash in their usual way.
"It has not helped that TSB in Tain is refusing to follow other banks like Clydesdale in cancelling all planned bank branch closures for the foreseeable future. I continue to urge the Treasury to trial community banking hubs in the Highlands and hope that this letter will go some way to show them that the access to cash issue is a problem for MPs across the political spectrum."
