Charging ATMs hit poorest hardest
The poorest groups in society are the ones most affected by charging cash machines.
That is the conclusion of a new report by Citizens Advice, which reveals that the poorest members of society often have no choice but to pay to withdraw their cash.
"This is becoming a growing problem," said Citizens Advice chief executive David Harker.
"People on low incomes need to take out small amounts of money and more frequently, but they should not be penalised as a result."
Overall, there are now more free cash machines than ever before, with 96 per cent of all withdrawals coming at ATMs that do not charge.
However, a massive increase in the number of charging cash machines in local shops, pubs, hospitals, and other areas means that fee-charging ATMs are now present in areas where there are no free-to-use cash points.
Additionally, in a few instances ATMs that had previously been free to use have been converted into charging ATMs.
"Rural communities are amongst the worst affected, where people may have to travel miles to the nearest free cash machine or pay a high charge," Citizens Advice's Mr Harkins noted.
This problem has been made worse because people on low incomes are now paid directly into bank accounts, meaning they have to use ATMs to access their cash.
The government also pays benefits directly into bank accounts as a cost-saving measure, meaning pensioners and single parents are required to use cash machines to access their money.
And some of the most deprived areas of the UK are also the most likely not to have a free-to-use cash machine in them.
Citizens Advice points to Chapeltown in Leeds, identified by the government as one of the most deprived areas in Britain, which has ten fee-charging machines but no free ones.
St Osyth and Jaywick in Essex are also identified as deprived areas. Both have high numbers of pensioners and no free cash machines.
Citizens Advice also revealed that many people are missing the warnings on cash machines and are unsure if they will be charged or not.
Link, which runs the UK's cash machine network, said it is working towards improving this situation.
Edwin Latter, Link ATM scheme director, pointed out that since last summer there has been a massive improvement in the warnings on fee-charging cash machines.
Link requires cash machines to warn people three times before they charge people.
First there must be a warning on the outside of the machine, secondly there must be an on-screen warning before people use the ATM, and thirdly people must be told on-screen that they will be charged before money is dispensed.
"While the vast majority of cash machines are compliant [with these rules], it is still too easy to miss the warnings," Mr Latter told MyFinances.
As such Link is discussing proposals to improve the situation with MPs and working towards a better solution, he said.
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