Up to 70 per cent of free-to-use cash machines could close or charge fees as rising costs hit operators.
Operator Notemachine warns funding cuts could leave firms with “no option” but to charge customers.
It means that more than 37,000 free-to-use machines may disappear.
Link, which runs the UK’s network of cash machines, has written to the operators and said it will not be increasing the interchange fee – paid to operators by banks when their customers use a machine.
This is 26.5p for most machines but 29.3p for those given protected status.
These fees have been reduced in recent years, despite rising operating costs, with the Bank of England repeatedly raising interest rates, and operators being forced to spend more because of inflation and energy costs.
Experts warn the only machines likely to survive are those attached to banks and supermarkets, or already given “protected status”.
Only 3,300 free-to-use machines are protected, 6.3% of Link’s network.
Since 2018 there has been a 10 per cent reduction in funding and at the same time the number of free-to-use machines has dropped from 52,358 to about 40,400.
Notemachine said firms faced being forced to pass the costs on to customers or close them down.
Philip Bowcock, of Notemachine, said: “The failure to increase funding has heaped further pressure on operators.”
A spokesman for Link said: “3,300 of these free machines in rural and less well-off areas receive a subsidy worth over £10million per annum from Link to ensure that the spread of free machines remains good.
“Link is committed to spending whatever is necessary to support this position.
“It is vital older people have free access to cash, especially in rural areas and towns where there are no banks.”
