/ Money

Would you be affected if your local ATM was shut?

With bank branches closing across the country, there has never been a more pressing time to look at the future provision of cash and access to financial services. Ged Killen MP explains more.

Let’s start with a startling fact: there are now more ATMs in the Houses of Parliament than there are in centre of Cambuslang – the major town of the constituency I represent. The ATM machines that are there regularly run out of cash.

Like many small towns, Cambuslang has faced challenges in recent years. The town centre is not as busy as it once was and as more services like banks leave the area, footfall continues to drop and it becomes more difficult for local businesses, many of whom rely on small cash transactions, to survive.

In the constituency of Rutherglen and Hamilton West overall, we have lost six bank branches in recent years and there are now very real concerns that free-to-use ATM machines are at risk of closure.

A cashless society?

We may be moving towards a cashless society, but we are not there yet. Many people still rely on cash, particularly those who are living on a tight budget and people who are not as confident using modern technology such as digital banking and contactless payments.

I think it crucial that we do not allow banks to force the pace of change to suit their own profit margins at the expense of consumers who are at risk of being left behind by advancements in technology.

I believe LINK’s decision to cut the interchange fee paid to ATM operators by the banks when you withdraw cash from a machine is an example of a forced change that will put thousands of free-to-use ATM machines at risk. If machine becomes unprofitable as a result of LINKs decision, the temptation for operators may be to introduce charges on what were previously free-to-use ATMs.

This is a particular risk in more deprived or rural communities, meaning the most vulnerable could be asked to pay more. That is why I want to shift the risk and the burden away from consumers. If we are moving towards a cashless society, we must ensure that we do not arrive there via fee-charging ATM machines that penalise consumers.

A right to cash

My Private Members Bill would ban ATM charges and establish a right to free access to cash based on a full market review by the Payment Systems regulator to establish demand for cash.

Change should be driven by consumer use, not by banks acting in their own interest. So long as there remains a demand for cash, access to that cash should be freely available no matter where you live.

This is a guest post by Ged Killen MP. All views expressed here are Ged’s own and not necessarily those also shared by Which?.

Do you use cash for the majority of your purchases? Are you reliant on ATMs? How would your life be affected if they were to close?


Maybe other shops, pubs, and retailers that take in cash could also be persuaded to join a cashback scheme. We would, I suggest, be far more likely to get better coverage than we could ever hope for with ATMs.

I agree – and with local bank branches closing it could be a useful facility for traders who mainly deal in cash. Some traders can reciprocate, for example sub-post offices often need more coins than they take in so welcome other shops exchanging their notes, or will use cheques to buy cash from adjacent traders. My hairdresser helped the nearby betting shop which collected too much in coin but he needed more coin than he acquired.

I am 90 years old and rely on cash from the ATM 1/2 a mile away for all my cash for my nearly full time Housekeeper and my Gardener, also for many other items.
I use internet banking and cards for the rest of my money, but closure of this ATM would greatly affect my life.

David Saunders says:
19 June 2019

Yes indeed I share your views ! I’m 85 years old and am disabled. I have a Blue Badge for parking and I have to find somewhere to park for a short time to access the ATM. Because I am a widower I have to employ a cleaner, gardener and a personal assistant to cope with all the ‘Lady Things’ . For this I need cash. Local traders are sometimes unwilling to give you cash-back in excess of £50.00.
My credit cards have been seriously hacked (£2500) and I like to be careful where I use them.

Christine Capewell says:
12 March 2019

I use internet banking but I also regularly use atms. My son tells me that we are also heading towards a card less society where all transactions will be done on smartphone. I am certainly not ready for this. I find it difficult to keep up with modern technology. As a senior citizen I still believe that there are a lot of my contemporaries who would find it very difficult to manage without the ability to use cash.

I’m not ready for phone payments or banking but expect that these will become increasingly popular, Christine. Smartphones are portable computers and are increasingly used for tasks we used to use computers for. I have friends in their 60s and 70s who rarely turn on their computers these days, relying instead on their phones.

I don’t have a problem with people using phones for transactions, using cash or cards. I feel that we might be pushed towards paying for parking by phone.