Barclays glitch means no cash

UP TO 80,000 people could be without money over the Easter weekend after a computer glitch at Barclays meant payments, including wages, have not been processed on time.

The payments should have gone through the BACS system in time for the weekend. A Barclays spokeswoman, Hilary McVitty, said: 'The BACS system is the means by which banks send automated payments between different banks and for some reason this failed.

'The payments are now in transit but the ultimate effect is that because of the Easter bank holiday, payments which would have gone into business accounts today will now not appear until Tuesday.' The bank did not yet know how many people had been affected but it was at least 'several thousands,' she said.

Barclays has asked other banks to allow consumers to withdraw cash from Friday, even if it led to them exceeding their overdraft limit.

Customers at Lloyds TSB and Natwest RBS banks will be able to get money from ATMs, from Friday. From Saturday at the latest customers of Bank of Scotland, Clydesdale, Co-Op, Nationwide, Northern and Yorkshire will have access to their cash from ATMs, Barclays said, adding it is still in talks with other banks.

But HSBC customers would not be able to get money until Tuesday if they went over their limit unless they took a copy of their pay slip into an HSBC branch today, Barclays added.

McVitty said people should not panic. 'Our prime concern is to do everything we possibly can to ensure people are not impacted and that they can take out money. If people are going into their branch on Saturday, we do suggest they take the appropriate pay slip.'

Barclays would compensate people for any charges they incurred as a result of the problem if they applied to the bank in writing.

The error affects consumers who work for firms that bank with Barclays, regardless of where they have their personal accounts. Consumers who have current accounts with Barclays but work for firms whose payroll is handled by a different bank are not affected.