Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department is taking steps to help (a) support and (b) promote credit unions.

The Government is a strong supporter of credit unions, recognising the vital role that they play in the financial wellbeing of their communities, providing savings and affordable loans to their members. The Government is committed to ensuring that credit unions are supported in maximising their growth and success.

This summer, the Government amended the Credit Unions Act 1979 so that credit unions in Great Britain can offer a wider range of products and services. These changes allow credit unions to offer hire purchase agreements, conditional sale agreements, and insurance distribution services, diversifying their income streams. This will enable credit unions to continue to grow sustainably for the future and supports them in the vital role they play in financial inclusion.

Additionally, to date, the Government has allocated £145 million in dormant assets funding to Fair4All Finance which works to improve the availability of affordable credit, including through support for community finance providers.

The Government is continuing to work with credit unions and other industry members to assess how we can best support the sector going forward.