Call to link claimants to free ATM network

Link said despite the fact Post Office Card Accounts were connected to its network early this year, cardholders with one of the accounts were only able to use Bank of Ireland cash machines.

It said the Bank of Ireland operated less than 4 per cent of the ATMs in the UK, leaving the four million people who had their benefits paid into a Post Office Card Account who were not near one of the bank's machines, still needing to travel to a post office branch to get their money.

The group added the situation meant these people were unable to benefit from the 740 free ATMs installed in the country's most deprived areas since 2006.

It is calling on the Government to lift the restriction to make it easier for people to get their benefits.

Edwin Schooling Latter, managing director of Link, said: "Working with Government and consumer groups we've had a massive success in spreading free-to-use cash machines into lower-income areas previously without ATMs.

"The final push to see this important work to a close would be to ensure the Government's own cardholders – four million people receiving their benefits through a Post Office Card Account – can access the free ATMs."

The group said it cost around 20p for a cardholder to withdraw cash from another group's cash machine, but this cost, which is passed onto the card issuer, was far less than the cost of carrying out a similar transaction over the counter.

Marie Burton, policy advocate at Consumer Focus, said: "Our research shows that Post Office Card Account holders want cash machine access, so it is very frustrating they aren't benefiting from these free cash machines. In 21st century Britain people shouldn't need to rely on post office opening hours to take out their own money."

Link also said it hopes to install more ATMs in areas that are on its target list for communities that would benefit most from free access to their cash during the coming year.

Areas on the list include Kirkby in Liverpool, Queensway in Scunthorpe, Luton South, Caerau in South Wales, and some rural parts of Cornwall, particularly around Land's End.

A Department for Work and Pensions spokeswoman said: "Those who use POCA choose to do so.

"We are happy to pay benefits or pensions into any bank account supplied."