The number of free-to-use cash machines available in the UK has fallen by almost 30% in the past five years, new figures reveal.
ACS’ Access to Cash Tracker, which reveals the change in ATM provision in every constituency across the UK, reveals the total number of free-to-use cash machines currently stands at 37,836, down from over 53,000 in 2018.
Figures from the 2023 Local Shop Report show that 40% of convenience store retailers offer a free-to-use cash machine for customers in their stores, with 12% having a charged cash machine on site.
ACS has called on the government to review the level of the interchange fee which is set by Link to cover the operation and management of ATMs.
James Lowman, ACS Chief Executive, said: “Cash is still an incredibly important payment method for millions of people in the UK and is used by many customers as a way of managing their money.
“Convenience stores play a vital role in providing customers with access to their cash, especially with the closure of bank branches in communities, but many members have told us that they are being forced to either remove or change their free-to-use ATMs because they’re just not financially viable.”
Kerry Booth, Chief Executive of the Rural Services Network, said that while the government has committed to people and businesses being no more than three miles away from a place that they can withdraw cash, reducing ATMs mean that in reality it is becoming more difficult for rural residents to access cash.
He added: “In my constituency, the total number of ATMs has reduced by over a third in the last five years. We would like to see government ensure that rural residents are not being disadvantaged yet again simply because of where they live.”
Craig Beaumont, Chief of External Affairs at the Federation of Small Businesses, said it’s vital that cash remains an element of a competitive payments market, to keep a downward pressure on card fees.
Beaumont added: “While a ‘cashless society’ will be possible later, it should be when people are ready – and also when a potential digital currency launches to maintain competitiveness. The choice should be for consumers and businesses to make, not have that decision taken out of their hands by removing their access to cash.”
NoteMachine Chief Executive Steve Makaritis believes the UK’s cash machine network is at a “crunch point” due to the withdrawal fee remaining the same since 2018, resulting in a 10% real terms reduction, leaving independent ATM operators like NoteMachine no choice but to convert to pay-to-use.
He said: “This funding challenge must be addressed by the FCA, with close support from government, in order to safeguard cash access for the consumers and businesses that rely on it as both a payment and budgeting method. Without intervention, the UK risks a significant reduction in free-to-use ATMs, jeopardising cash accessibility for all.”
