Banks are on course to put ‘hole-in-the-wall’ machines into Britian’s poorest areas.

The initiative, spearheaded by Britian’s high street banks, will see more than a million customers, who currently have to travel or use machines for which there is a charge, able to access their money free the British Bankers’ Association said today.

Angela Knight CBE, chief executive of the BBA said, she was delighted the government had recognised the contribution banks were making towards full financial inclusion.

Ms Knight said: “Banks are determined that customers have access to their cash wherever they live and work. Banks have driven a campaign to put machines into some of the UK’s poorest areas which means people on low incomes will have the same free access to cash as those in more affluent places. We are working hard to ensure banking services are open to everyone.”

Half of all the cash machines in the country are operated free by the banks - a system which independent research, conducted by Oxera, said was unique to the UK. In other countries surveyed customers have to pay for the use of cash machines.