Cashpoint to issue only £5 notes

A cash machine which only issues £5 notes is being introduced in east London in a bid to put more of the notes into circulation.

The UK's first £5-only cash machine will be installed in Roman Road, Bethnal Green, next month.

Operator Bank Machine said: "No-one likes having to pay for a low-cost product with a £10 or even £20 note."

Last year Bank of England governor Mervyn King said banks were not putting enough £5 notes into circulation.

The total value of Bank of England notes in circulation doubled from £20bn in 1997 to £40bn last year.

But the value of £5 notes has remained constant for 15 years, at £1bn.

'Soiled and scruffy'

Banks find it more economical to fill cash machines with higher denomination notes, such as £10 and £20, as they need to be refilled less often, Mr King said.

Without fresh notes in circulation, the existing £5 notes have become "noticeably soiled and scruffy", he added.

The £5-only machine will be located near a busy Bethnal Green market, Bank Machine said, with a further 20 machines planned around the UK.

The firm said it would not charge users a fee to withdraw money from the £5-only machine.

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