2-07-03

Scrap convenience cash machine charges – Barrett

John Barrett, Scottish Liberal Democrat MP for Edinburgh West, today slammed the massive rise in the number of cash machines charging for the withdrawal of money.

Latest figures show that there are now 11,000 'convenience' cash machines across the UK which typically charge between £1.25 and £1.50 for each withdrawal.  The figure compares to just 872 such machines in February 2000.  Approximately 25% of the entire cash machine network now charges its customers costing people an estimated £115 million every year.

Mr Barrett has joined over 60 other MPs who have backed a cross-party parliamentary motion which calls for the firms operating the machines to remove the charges altogether.

In a statement, John Barrett MP, whose Edinburgh West constituency includes Edinburgh airport said:

"The massive growth in the number of these so called 'convenience' machines has meant the number of transactions being charged, even in the last few years, has skyrocketed.

"All too often, it's those on lower incomes who are hit the hardest.  For those withdrawing even just £10, the £1.50 which these cash machines charge marks a ludicrous 15% fee.

"Most Banks are able to operate their cash machines and the various transactions without charging.  However, some banks in addition to other independent firms who operate the convenience machines are costing people hundreds of millions of pounds every year.

"The sooner these charges are scrapped, the better."

ENDS

Notes to Editors

1. John Barrett is one of 66 MPs from all the main three political parties who have supported Early Day Motion 1284 which states:

That this House condemns the sharp rise in the number of cash machines which charge customers for removing their money; notes that convenience machines placed at locations such as supermarkets, pubs, post offices, factories, amusement parks and service centres charge customers between £1.25 and £1.50 for each transaction, with the number of machines charging rising from 3.2 per cent. in February 2000 to 24.5 per cent. in February 2003; further notes that overall this is costing an estimated £115 million a year hitting those on low incomes hardest; and calls on the firms operating the machines to remove these charges.

2. More information surrounding cash machine charges and statistics can be found from the Nationwide at www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=432