Pubs and shops to dispense cash as part of plan to solve ATM closures
SHOPPERS may soon be able to take out cash at pubs and shops in a bid to bridge the gap left by bank and ATM closures.
More than 8,700 free ATMs have been axed since January 2018, while more machines than ever are charging for withdrawals.
People now have to stump up £2 a pop to withdraw cash at 25 per cent of the UK's 60,291 ATMs.
That's according to consumer group Which?, which adds that on top of this, 1,203 bank branches closed between January 2018 and December 2019.
Plus, this year alone we've seen Virgin Money, Clydesdale and Yorkshire banks, HSBC, and Lloyds reveal plans to collectively shut hundreds of sites throughout 2020.
But the reports that new Chancellor Rishi Sunak is set to unveil an initiative to tackle the problem in his forthcoming Budget on March 11.
He's thought to reveal plans to enable pubs and shops to dish out cash, with banks being forced to foot the bill for local businesses.
The Mail says a cashback service costs 40p for every £10 handed over.
The Treasury told The Sun it wouldn't comment on Budget speculation.
Mr Sunak took over as head of the Treasury in February when before even holding his first Budget.
Currently, major retailers including Morrisons, Sainsbury's, Spar, and Tesco allow shoppers to request cashback at the tills when paying by debit card but these stores aren't in every UK town.
The issue is that while the use of cash is on the decline, 8million vulnerable and elderly people still rely on it, as do those in rural communities.
Natalie Ceeney, chair of the Access to Cash Review, says the government's plans would not only help consumers, but would also be a boost for local businesses too.
She said: "The change would allow all shops and pubs to provide cash access – supporting their business at the same time.
"A clear case for this is to give banks an obligation to provide cash access to their customers and cashback provides a solution where others fail."
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But Jenny Ross, Which? money editor, says the government needs to introduce a regulator to guarantee continued access to cash.
She said: “While industry-led initiatives such as cashback might be part of the solution, these can’t fix the issue alone and are not enough to stem the tide of bank branch and cash machine closures in the long run.
“It’s clear that this Budget will decide the future of cash. The chancellor must seize the opportunity to legislate to protect cash for the millions of people who rely on it.”