Consumer group calls for urgent government action to protect cash users

The research shows that some parliamentary constituencies – among them some of England’s most deprived areas, where people are more likely to depend on cash – have seen a significant shift from free-to-use cashpoints to machines that charge up to £2 per withdrawal in recent years.

Since 2018, two Birmingham constituencies – Hall Green and Hodge Hill – have seen 44% and 40% reductions in free-to-use ATMs, respectively, but both had a 59% increase in pay-to-use machines. Nottingham East has seen 43% of free cash machines closed, but an 11% increase in pay-to-use machines. All three locations are within the top 10% for deprivation in England.

Harrow East and Feltham and Heston – both in London – have seen the largest fall in the number of free-to-use ATMs, dropping by 56% and 46%, respectively, while the number of pay-to-use machines has increased by 27% and 67%.

In Glasgow North West the number of free machines has fallen by 45% – from 86 to 47. Meanwhile, the number of pay-to-use cashpoints has shot up from 11 to 34, representing an increase of 209%.

Across the devolved nations and English regions, Which? found that all areas had lost 21-27% of their free cash machines since 2018, but in some of these locations, the number of pay-to-use facilities has surged. In Northern Ireland and Scotland, the number of cashpoints that charge has risen by 78% and 35%, respectively, while the free-to-use network has shrunk by 23% and 25%.

The group says its findings highlight the need for urgent clarity and direction from the government on the role of cash in the future. This includes a clear timeframe for when legislation will be introduced, as well as specific details about how it will ensure that cash continues to be a viable payment method for those who need it.

Gareth Shaw, Which? head of money, said: “Everyone should have reasonable access to their own money without having to pay. Yet our research shows free cash machines are vanishing at an alarming rate – often in areas where people need them most.

“ATMs are only one piece of the jigsaw, and the government needs to swiftly set out its plans for the future of cash. Legislation is a fundamental part of this, and there is an urgent need for a clear timeframe for when it will be in place, so that industry and regulators can work with the government to ensure that cash is protected as a payment method for those who have no other option.”