Another £3m needed after 275 requests for free to use ATMs in Scotland

It comes two weeks after it emerged that 10 free-to-use ATMs have continued to shut down every week in Scotland in the last year.

In August the ATM overseers said that should a high street be threatened with the loss of an ATM or Post Office, it would step in to ensure that a cash machine is made available and paid for with funding from all the UK’s main banks and building societies.

And in October, it invited consumers and community groups to put in requests for an ATM through the Community Access to Cash Delivery Fund.

READ MORE: Poorest Scots hit hardest by cash machine exodus

An initial sum £1m was set aside to support and it has been confirmed this is enough to put in 50 machines.

But the network operator says that while an unquantifiable number of requests may be impractical to action, they will need to secure a further £3m from banks and building societies early next year to deal with demand.

Gareth Shaw, head of money with Which?, said problems dealing with a huge number of requests for free to use ATMs shows that the government has to intervene to ensure the public's free access to cash.

"The flood of requests for free cashpoints across Scotland shows the huge demand for cash and exposes worrying gaps in Scotland's cash machine network," he said.

"Many communities face real uncertainty as to whether a voluntary piecemeal approach will provide the vital free cashpoints many people need just to go about their daily lives.

"It's clear that industry alone cannot fix Scotland's cash crisis, which has left the system on the verge of collapse. That's why the UK government must intervene with legislation that protects cash for as long as it is needed."

In a representation to MSPs last week, Adrian Roberts, LINK's chief commercial officer said: "It is absolutely not acceptable for people to have to pay to access their own cash."

The number of free-to-use ATMs has fallen below the 5000 mark in Scotland for the first time.

In July, there were 4767 free-to-use cashpoints – 516 fewer than in July 2018, meaning 43 are disappearing every month.

The north-west Highlands village of Durness, where locals have to drive for an hour to get to their nearest free ATM, was the first to receive a cash machine as part of the pledge - and it was due to come online last week.

READ MORE: Analysis -  'Loss of cash machines affects decisions on whether to eat'

LINK are expecting to approve between 25 and 30 new free ATMs over the next few months while admitting "more still needs to be done" to protect cash access. It will take three to six months to install after approval. LINK has already been touch with 30 of the 275 of those who feel there is a need for a free cash machine.

And it has confirmed it has sanctioned a second free ATM due to be installed in Gartcosh after the local tenants and residents association called for help.

It is understood a free ATM machine was voted the second most commercial asset requested by residents in a recent community survey only surpassed by a GP surgery.

Applications are being looked at on a case-by-case basis, depending on factors such as distance to nearest free ATM, the availability of a nearby Post Office and site security.

If there is another free cash machine within 1km within the community and no particular geographical challenges to reaching it, applications may be unlikely to be successful.

LINK admit "more still needs to be done" to protect access to cash and accepts there will be further challenges to install ATMs if shops refused to have them or there was no other obvious spot to position one.

Nick Quin, LINK's head of financial inclusion who oversees the requests for ATMs across the UK said: "It is about responding to needs. We have an ultimate pot of money from the banks and building societies and at the minute it is £1m. We are expecting it to be £4m.

"It will take us some time to work through the applications. It could take three to six months to install [after approval].

"Where we think there is a cash access need, we will go and look at the site and visit it in person, speak to the retailer, speak to people locally and try to get to the bottom of it, because a lot of this comes down to practical questions of what you can actually do there.

"The broad approach is we want to hear from people where there is a problem, and we want them to tell us what the problem is. Where a community demonstrates it is necessary, we will go and do what we can to help."