The owners of a cash machine introduced to give villagers easier access to money have slapped on a charge for every withdrawal.

The ATM was brought in to Coalburn Miners Welfare Charitable Society to save 1200 locals a trip when they wanted to withdraw cash.

Villagers persuaded the machine’s former owners, Lloyds Banking Group, to maintain a free service in the society building, a community centre.

But it was bought two years ago by ATM operator CashZone.

It told the committee who operate the building in the South Lanarkshire village that it would introduce the new levy of 95p.

George Greenshields, who helps run the community centre, said: “CardZone told me they were entitled to levy charges under the terms of their contract, which does not expire until 2023.

"When I told them we would simply switch off the machine, I was threatened with court action and told the centre could be sued for breach of contract.”

CashZone said the charge was levied because the machine was no longer economically viable.

George added: “We had the machine installed to give the people who come to the centre quick and easy access to their money. Many are either elderly, on low incomes or unemployed.

“Most only withdraw £10 or £20 at a time, so the 95p charge is a massive extra cost.”

Gareth Shaw, head of money at Which?, said no one should face a struggle to get free access to their own money.

Labour MP Ged Killen introduced a private member’s bill in the Commons last year which, if successful, would ban ATM charges. He said: “The Government must step in before this quickly becomes an access to cash crisis.”

Local MP and Secretary of State for Scotland David Mundell has also asked CardZone to ditch the changes.