Older people will be hardest hit as Post Office plans leave cash deserts

The Post Office’s decision to axe almost one in three of its free-to-use ATMs is yet another blow for older and vulnerable people, according to Age Scotland.

Scotland’s leading charity for older people is calling for urgent action to protect people’s access to cash following the latest round of closures.

The Post Office announced today that it would cut 600 cash machines from its network of around 2000 across the UK, following an end to its partnership with the Bank of Ireland.

It plans to spend £16 million over four years replacing the remaining ATMs with new technology. The locations of the closures will be announced later this year.

The decision follows TSB’s announcement last month that it would close more than half its branches in Scotland.

Research by Which? last year found that ATMs in Scotland were closing at a rate of around 43 per month. At the same time, Link found that the number of ATMs charging up to £2.99 for a cash withdrawal went up by 565 in 2019.

Thousands of ATMs across the UK which closed at the beginning of the coronavirus pandemic, including many in shops and train stations, have yet to reopen.

Brian Sloan, Chief Executive of Age Scotland, said: “This is devastating news for tens of thousands of older people, especially in rural communities, who rely on the Post Office to access their cash.

“There’s no doubt this will lead to further cash deserts in Scotland, with more people having to travel long distances or shell out several pounds every time they need money.

“While cash-free transactions are becoming more common, a fifth of consumers still mainly rely on cash, including a high proportion of older people. Those without a car will especially struggle if they have to go to the next town to find a free cash machine.

“While people can still withdraw money at the Post Office counter, this often means waiting in a long queue and being restricted by opening hours. Many are especially reluctant to do this during the current pandemic.

“As more and more banks withdraw from Scotland’s communities, they often assume that Post Offices will step in to fill the gap. Unfortunately, today’s announcement shows we can’t rely on them.

"We urgently need banks, the Post Office, and the Scottish Government to work together to ensure that everyone is able to access their cash.”

Which? has found that Scottish people in rural communities are already struggling to access their nearest cash machine, with one in five saying it is more than half an hour's walk away. Poor mobility and a lack of public transport make this especially difficult for older people.

Photo by Nick Pampoukidis on Unsplash