Lord Newby
Main Page: Lord Newby (Liberal Democrat - Life peer)Department Debates - View all Lord Newby's debates with the Department for Work and Pensions
(12 years, 3 months ago)
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Lord Freud
My Lords, there are various restrictions on credit unions at the moment. I am not aware of an absolute limit on loans. Clearly, the unions need a financially viable business structure. They do not have one at the moment. A typical loan from a credit union is about £500. It costs the union more than £75 to make the loan and it earns less than £63, so getting a new mix of business is vital.
Lord Newby
My Lords, does the Minister agree that the next big step required to increase the volume of credit union activity is to make credit union accounts accessible via post office counters? Will he assure the House that this option is under active consideration as part of the wider review that he described?
Lord Freud
Yes, my Lords, that aspect of the review is under active consideration.