Cash Dispensing: Fees and Charges

(asked on 8th June 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of interchange fee reductions on the ability of cash machine operators to provide free-to-use cash machines.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 16th June 2021

LINK (the scheme that runs the UK's largest ATM network) has commitments to protect the broad geographic spread of free-to-use ATMs and is held to account against these commitments by the Payment Systems Regulator.

Specifically, LINK has committed to protect free-to-use ATMs more than one kilometre away from the next nearest free ATM or Post Office, and free access to cash on high streets (where there is a cluster of five or more retailers) that do not have a free-to-use ATM or a Post Office counter within one kilometre. Furthermore, LINK's members have made £5 million available to fund ATMs at the request of communities with poor access to cash.

LINK also publishes the total number of free-to-use ATMs across the UK online. As of April 2021, they reported that there were around 41,000 free-to-use ATMs in the UK. LINK’s Monthly ATM Footprint Report also publishes information monthly on the breakdown by constituency.

On bank branch closures, these decisions are taken by the management team of each bank on a commercial basis. However, the Government firmly believes that the impact of branch closures should be understood, considered, and mitigated where possible. In September 2020, the Financial Conduct Authority published guidance setting out their expectations of firms when they are deciding to close a branch or free-to-use ATM. Firms are expected to carefully consider the impact of a planned closure on their customers' everyday banking and cash access needs, and other relevant branch services, and consider possible alternative access arrangements.

More broadly, the Government recognises that cash is important to the daily lives of millions of individuals and businesses across the UK, and has therefore committed to legislating to protect access to cash for those who need it and ensuring that the UK's cash infrastructure is sustainable for the long term.

The Government made legislative changes to support the widespread offering of cashback without a purchase by shops and other businesses as part of the Financial Services Act 2021, and has announced that it will consult this summer on further legislative proposals for protecting cash for the long term.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

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