AS I'VE highlighted before on this page, the cash dispenser network is particularly important in rural constituencies like Dumfriesshire, Clydesdale and Tweeddale.
I've heard of older constituents, shielding at home during the lockdown, using cash more often just now to refund family or friends who run errands for them, such as shopping.
Safeguarding a free-to-use cash network must be a high priority, something I feel justified in championing.
The UK Government has committed to legislate to protect access to cash over the course of this Parliament. However, if it doesn’t act soon, we risk losing valuable cash infrastructure forever.
I pointed out in the House of Commons recently that convenient dispensers were more important than ever.
Yes, transactions are down due to lockdown measures and there is a harmful misconception that cash is dirtier than other payment methods, but for many, cash remains a lifeline.
It is especially important for the most vulnerable, particularly those living in rural areas where banks have withdrawn branches.
An Access to Cash Review found that 2.2 million people in the UK only use cash. 1.3 million people had no bank, without access to a current account or alternative e-money account.
Around eight million adults would struggle to cope in a cashless society and in rural areas, infrastructure poses a significant barrier to accessing cash due to a lack of broadband or reliable 4G.
Of 5.3 million adults who never use the internet, 3.7 million live in rural areas.As I mentioned before, Covid-19 has exacerbated the importance of cash for many, especially those that rely on other people to shop on their behalf, whether elderly, vulnerable or self-isolating.
Cash also makes budgeting easier for many.
Prior to the pandemic, LINK, the UK’s ATM network operator, initiated cuts to the ‘interchange fee’ – a fee paid by banks to allow customers to withdraw their cash.
In practice, this made ATMs more uneconomical and thousands of machines being converted from free to pay-to-use, while thousands more have disappeared.
The Government must reprioritise protecting access to the cash network.
The pandemic has served to accelerate the collapse of cash infrastructure which will, in turn, leave hundreds of thousands of the most vulnerable at a disadvantage compared to those who are willing and able to access their cash at an additional cost.
Free access allows cash to be recycled locally, supporting small businesses and local communities towards the road to recovery.
ATM operators state they are willing to convert their fee charging machines back to free if the network is funded fairly, as it used to be.
Government legislation to protect access to cash must be expedited. We must act now, with urgency, to protect our cash infrastructure or there will be nothing left to protect.
Any legislation must ensure that cuts to the interchange fee – the fee paid by banks per withdrawal so their customers can access cash – are reversed.
Going forward, the interchange fee must be based on cost study findings – this is a fair method taking account of cash usage trends.
The solution is simple and it can happen quite literally overnight at no extra cost to taxpayers.