Residents are celebrating after a free-to-use cash machine was installed on an Oxford estate following a two-year campaign.

The new cash machine was installed at Barton Post Office following pressure on both the Government and banks - and replaces one that charged people up to £1.75 per withdrawal. Residents and local MP Andrew Smith welcomed the news and said the new machine, which was installed this week, would make a big difference.

Previously, people had to walk more than a mile to reach the nearest free-to-use cash machine, in London Road, Headington.

Oxford East MP Mr Smith, who raised the issue in the House of Commons 18 months ago, said: "This is very good news for the people of Barton. It's particularly important here, because other free machines are so far away, especially for elderly people and others without cars.

"To be having to pay to get their own money out was a real burden. The other very important thing about this is the people on the lowest incomes tend to take out the smallest amounts - but you were charged whether you took out £10 or £100.

"Poor people were actually penalised by paying a larger share of their money in charges."

Mr Smith, who successfully campaigned for a similar machine in Blackbird Leys last December, said he also nominated Rose Hill, Wood Farm, Northway and Littlemore for free-to-use machines.

Of those, only Barton fulfilled the criteria of being far enough away from an existing free-to-use cash machine. Barton resident Les Carter, 50, of Bassett Road, said: "It's very important, because there used to be a £1.75 charge and I wasn't very happy, to be honest."

Fellow resident Julia Mills, of Mather Road, said sometimes she had been forced to pay up to £3.50 a day in charges.

She said: "It's good news. A lot of times I have come down, drawn £20 out, paid £1.75, and then later on thought I need more money and paid to do it again. It soon adds up.

"It's just giving money away for nothing and it's my money, so it's really frustrating."

Post office manager Amir Bhatti said he hoped the new cash machine would boost trade. He added: "Now it's free, everybody just keeps on getting money out. Before some people moaned, but now they are quite happy."

NatWest Bank spokesman Robin Taylor said: "Lack of free access to cash can badly affect the most vulnerable people in society.

"Having a free-to-use cash machine can make a real difference to the elderly, disabled and those living on a very low income."

DECEMBER 2005: The Oxford Mail reports on the proliferation of cash machines which charge to withdraw money and the problems they cause for people on low incomes; FEBRUARY 2006: In the House of Commons, East Oxford MP Andrew Smith praises the Oxford Mail's investigation into the lack of free cash machines in low income areas; AUGUST 2006: The Royal Bank of Scotland asks people to nominate areas for new machines; DECEMBER 2006: Blackbird Leys finally gets its free-to-use cash machine; FEBRUARY 2007: Link, which manages a network of free cash machines across the country, said Barton was an appropriate location for a machine; OCTOBER 2007: NatWest Bank, which is part of the Royal Bank of Scotland group, installs Barton's first free-to-use machine.