Cash machine charges hit poor hardest says report

Cash machines which charge for access to money are hitting the least well-off the hardest warns a Citizens Advice report.

Lack of mobility or access to free banking services leave many with little option but pay to access their money, said the report.

“This is becoming a growing problem,” said Citizens Advice chief executive David Harker.

“People on low incomes need to take out small amounts of money and more frequently, but they should not be penalised as a result.

“Rural communities are amongst the worst affected, where people may have to travel miles to the nearest free cash machine or pay a high charge,” he added.

The problem has been exacerbated by the switch to paying all wages, pensions and benefits into bank accounts, said the report.

Many low-waged individuals, particularly in urban areas, already face challenges in getting the best current account deals in districts that are no longer served by bank branches.

The report gave as an example Chapeltown in Leeds, identified as one of the poorest areas of the UK, which has ten fee-charging machines but no free ones.

© Adfero Ltd

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