The Government’s manifesto commits to support the credit union movement in making financial services more accessible over the course of this Parliament. The Government has supported the sector in the following ways:
Investing up to £38 million in an expansion project for credit unions, aimed at helping credit unions expand and grow sustainably.
The Government announced at AS16 that a greater proportion of funds recovered from illegal money lenders will be allocated to incentivise vulnerable people to join, save and borrow with a credit union instead of turning to loan sharks.
The Coalition Government also increased the maximum interest rate that credit unions can charge on loans from 2% to 3%. This has helped credit unions become more stable.
The Government will continue to look at ways it can help support the sector.