Free Cash Withdrawals

Charlotte Leslie Excerpts

Monday 8th December 2014 Commons Chamber

[Charlotte Leslie (Bristol North West) (Con)]

I am grateful for the opportunity to bring this subject to the House. Most of us are lucky enough to take for granted that when we need cash, we can go to the nearest hole in the wall and access our money for nothing without being forced to pay for the privilege. However, many of us do not know how lucky we are. In almost 300 areas of the UK in the bottom quartile of deprivation measures, approximately 300,000 residents are more than a kilometre from an ATM where they can access their money for free.

Thanks to action from LINK, the ATM network, and the work of the right hon. Member for Birkenhead (Mr Field), the situation has been getting better over time. Back in 2006 there were more than 2,000 areas without a free ATM. However, the fact that in 300 of some of our poorest areas people still have to pay through the nose to access their own cash is nothing short of a disgrace. One of those areas is in the ward of Lockleaze in my constituency.

LINK produces a financial inclusion map of the UK, showing distances from the nearest free-to-use ATM. Lockleaze can be found by locating the great gaping hole over Bristol. That is Lockleaze, one of the 300 official “outstanding financial inclusion areas”. In plain English, that means people there simply cannot access free cash withdrawals.

Lockleaze is an amazing, warm and vibrant community. It is where I go to church—a shout-out to St James’s—followed by a proper Sunday roast, tea and the Sunday papers at Cookies Cafe on Gainsborough square. But if a customer needs cash for their roast chicken and spuds at Cookies, or indeed for anything else in Lockleaze, the only ATM within a kilometre charges £1.85 for the privilege of accessing their own cash. That would make anyone angry, but for those on jobseeker’s allowance, struggling and able to afford to withdraw only small amounts at a time, it is simply a massive and unaffordable hit. Do not forget that over 7 million people, often our poorest, rely on cash for their regular payments for gas and electricity meters.

The grim irony is that so many of the communities without access to a free ATM are, like Lockleaze, some of the most deprived in our country. The Lockleaze community is warm, strong and vibrant despite the fact that it is among the top 10% poorest areas nationally. Many in Lockleaze simply cannot travel the distances to access cash for free, so they are literally trapped. To put that in context, in another ward in my constituency, Westbury-on-Trym, which is not financially struggling, there are at least six free ATMs just around the war memorial roundabout. It is simply wrong that our least well-off should have to pay the most to access their money.

It is not good enough just to talk about these things for a few months, maybe set up a Facebook page, get a few “likes”, drop a few leaflets, have a bit of a whinge and then move on; it needs to change, and it needs to be sorted. And it can be. In just a few weeks of working on this, I am delighted to report that LINK is coming to do a reccy of Lockleaze next week, when we will discuss potential providers and look at the venues that have come forward. We have already found a willing potential venue in The Hub community centre, and we are already talking with interested potential providers of a free ATM.

Many of the problems we hear about in this place seem insoluble, but this is one that we can demonstrate is not. It shows what can be achieved if the issue is properly highlighted, sleeves are rolled up and real work is put in. This is not an insoluble problem. If we can sort this out in Lockleaze, it is not only individual residents who will benefit, but the whole community.

Lockleaze is seeing welcome investment and development in the area. It already boasts, as I have mentioned, an amazing community café called Cookies, run by the amazing Lou and her family, as well as a pharmacy, a newsagents and a smoothie and vegetable bar, and there is more to come. However, if people have to go elsewhere to access their cash, those who can will, and they will spend their cash elsewhere. That will leave the people who cannot travel to access their cash trapped, and it means that all this new welcome investment and the new businesses moving into the area will wither on the vine.

What can be done? The Minister will be relieved to hear that I know that the Government cannot simply sprinkle magic dust cash machines around the country. However, I wonder whether the Government could work more with the industry to identify quickly these free cash deserts, make the data more widely available and prioritise ways in which organisations such as LINK can help bring free ATMs to these free cash deserts. I am a reluctant user of regulation, but perhaps the Government could consider whether it might be possible to introduce banking regulation to mandate the provision of free cash machines by population area.

Finally, we must look at the incentives in place for shops, in particular, to act as free ATM venues and providers. I urge the Government to review the application of business rates to ATMs, and the shops that provide them, to see whether that is deterring provision. I urge local authorities to consider greater use of discretionary relief to exempt shops with free ATMs. I urge my fellow MPs—it is a pleasure to see colleagues here this evening—to look at LINK’s financial inclusion and exclusion map, which is a very interesting document, and ask themselves whether some of those 300,000 people without access to free cash withdrawal are their constituents. These actions can all be taken at a national level to help to eradicate this appalling silent ball and chain around some of our most challenged communities—but Lockleaze needs action now.

To LINK, which is coming to Lockleaze in the next few days to help find a solution, I would say, “Thank you—there is no more deserving community.” To The Hub, which is considering accommodating the ATM and has been so practical and helpful, I say, “Thank you—tell me what else you need.” To the interested free ATM providers who have been in touch, I say, “Welcome. Lockleaze is brilliant. It’s an amazing, vibrant community. It’s going places—get in there before your competitors do.” Finally, to the people of Lockleaze, I say, “We need more than words—more than moribund Facebook groups and forlorn little leaflets.”

[Jim Shannon (Strangford) (DUP)]

We have similar problems in my constituency, where ATMs are not as available as they should be. I am sure that the Minister will be able to address the issue of how we can encourage banks and building societies to put in ATMs. Perhaps she can also consider raising the awareness of those who use credit cards for withdrawals and should be using debit cards instead. If some of these issues were addressed at this level, that would greatly assist in enabling people to get better access to cash withdrawals without charges.

[Charlotte Leslie]

I thank the hon. Gentleman for his intervention. He makes an absolutely superb point about financial education and information, which could perhaps empower people to kick up a bit more of a stink about the fact that they are having to pay £1.85 to access their own cash. Often people are just getting on with it—life is pretty tough and they do not want to complain and kick up a fuss. Those people should not be having to pay this money. We should empower them to say “No, this isn’t right and we shouldn’t have to put up with it”. I hope that the Minister will address these points.

A lot of words are said in this place, but we need more than words. It is encouraging that action can be taken when Members raise matters and sleeves are rolled up, but I never promise anything before it is done. However, I do promise my constituents—this might be a slight beacon of hope for other people across the country who cannot access free ATMs when they should be able to—that I will do everything I possibly can to end the scandal of lack of access to their own cash in Lockleaze. I have every faith that the Government will do everything they can as well.