The figure was revealed by Mr Balls and John McFall, chairman of the treasury select committee and chair of the ATM working group. They said excellent progress has been made in just six months since the working group, which was set up to examine the issue, struck a deal with banks and cash machine operators to increase free access to cash.
Of the target 600 new free cash machines, sites for 471 cash machines have already been found, with 127 free cash machines already installed and issuing cash to the public, and a further 344 locations contracted to have a free cash machine in operation, most of them by the end of this year.
The free cash machines already in use are enabling over 260,000 residents in low-income areas to access cash more easily, with a further 822,000 standing to benefit from the confirmed free cash machines still to come on stream, stated Mr Balls.
More than one million people in low income areas therefore will soon be benefiting regularly from not having to pay ATM charges and they will no longer have to travel to non-charging machines outside their own neighborhood to withdraw cash, he continued.
As an incentive for cash machine operators to set up and maintain cash machines free-of-charge, banks and building societies have agreed to pay a ‘financial inclusion premium.’ This scheme, which will compensate cash machine operators for the expected lower cash machine use in these areas, began on March 1, 2007 and will be funded through the transaction fee banks and building societies are charged when their customers use other cash machines.
In addition, operators are continuing work on signage for cash machines that do charge users to make it absolutely clear that a charge will be applied when withdrawing cash, so that customers can see at a glance whether a machine is free or charging.
