£45m upgrade scheme for cash machines ahead of plastic notes

High street banks are having to replace or upgrade thousands of cash machines because they cannot grip the new “slippery” plastic notes.

Polymer notes, which are longer-lasting and more difficult to forge, are hard for the rollers in many ATMs and counting machines to grip.

The ATM upgrade programme is costing an estimated £45 million but if vending machines and counting machines are included the total bill could be as much as £240 million.

Andy Mattes, chief executive officer with ATM maker Diebold, told Bloomberg financial news service: “Every bank has a polymer note project team working right now.”

The first £5 polymer notes, featuring Sir Winston Churchill, will be issued in September, followed in 2017 by £10 notes featuring Jane Austen.

New £20 notes will be out by 2020.