Banks: Cash Withdrawals

Lord Kirkhope of Harrogate Excerpts

Tuesday 11th June 2019 Lords Chamber

[Lord Young of Cookham]

I understand the noble Baroness’s concern for those who do not have access to free-to-use ATMs. I hope she will be reassured that the number of free-to-use ATMs in Scotland increased by 85% between 2008 and 2018, from 2,800 to 5,200. But the noble Baroness’s Question encapsulates a real challenge for Governments today: how do we respond to technological change which is cost-effective, popular, cheap and embraced by the vast majority but, for whatever reason, is not used by a minority? The use of cash fell by 16% last year. Only 28% of transactions were in cash—that figure is forecast to fall to 10%—and 5 million adults apparently did not use cash at all last year. The Government’s policy is quite clear: we want the Payment Systems Regulator to hold LINK’s feet to the fire—to its public commitment to maintain the broad spread of free-to-use ATMs. It has powers of direction and can levy fines to deliver that commitment. On her final question, if you ban charges you lose the pay-to-use ATMs, of course, and might prejudice the existence of the free-to-use ATMs by reducing the revenue stream for ATM owners.

[Lord Kirkhope of Harrogate (Con)]

Does my noble friend not agree that it is very important to remember that ATMs do not just dispense cash? They are increasingly available for a range of banking activities, and very usefully too. Does my noble friend agree that when branches of banks close, we should encourage as much as possible that those important facilities are retained somewhere in the community—whether a village or town—that is losing its bank branches? Is that not a good thing which we should be encouraging?

[Lord Young of Cookham]

My noble friend is quite right; they are used not just for cash withdrawals but often for deposits or balance queries. I very much hope that banks respond to my noble friend’s suggestion that if they have to close the last branch in a town or village, they ensure that they leave behind a free-to-use ATM that will replace at least some of the facilities that it used to provide.