400 free cash machines coming to poor areas

Royal Bank of Scotland (RBS) and Halifax Bank of Scotland (HBOS) are set to install 400 new free-to-use cash machines in the poorest areas in the UK.

The news comes a week after a study by Citizens Advice showed that the poorest members of society are forced to pay to use cash machines more often.

The report showed that many of the most deprived areas in the UK were effectively "free ATM deserts" with the only cash machines available charging people to use them.

To try and remedy the situation, RBS is seeking advice from MPs, credit unions and community leaders to find the places in the UK that need free-to-use machines the most, and installing an initial wave of at least 300 ATMs in these areas.

HBOS also announced today that it is targeting 100 poor areas with fee charging ATMs in place but no-free-to use ones.

"If there's a will in local communities to find suitable sites, we have a way to make it happen and ensure those with the greatest need have free access to their cash," said Gordon Pell, of RBS.

"The initiative is designed to ensure that the most vulnerable in our society, the elderly, disabled, those of limited financial means or whose benefits constitute all or the bulk of their income, have free access to their cash close to their point of need.

"By working in conjunction with local MPs, local authorities, credit unions and the communities they represent, to identify potential sites, the poorest areas in the UK will soon have free access to their cash, via machines located in their local area."

Shane O'Riordain, HBOS general manager, said: "We are committed to installing ATMs in deprived communities in our traditional heartlands. We will focus on those communities serviced only by surcharging ATMs.

"We will work with RBS to install free ATMs in the maximum number of relevant communities. We hope other banks will so the same."

RBS has already installed three free-to-use cash machines as part of this programme.

One ATM has been placed in the London Borough of Harrow's council offices, alongside social housing payments. The other two are in Glasgow, one in the local Woolworth's store in Partick with a second in the Yoker Credit Union.