Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she will take to increase levels of investment into community finance organisations such as credit unions.

The Government is taking concrete steps to increase investment into community finance organisations. In November 2024, the British Business Bank launched the Community ENABLE Funding (CEF) Programme. This will channel £150 million over the next two years to not-for-profit lenders, including Community Development Finance Institutions (CDFIs), to widen access to affordable credit for underserved consumers and businesses.

The Government also recognises the important role of credit unions in providing savings and affordable loans to their members and in supporting local communities throughout the country. It is therefore taking action to support credit unions to grow and scale into the future, including a package of growth‑focussed reforms to the credit union common bond.

These reforms were announced in the Financial Inclusion Strategy, published last month, which also outlines a number of measures aimed at improving access to affordable credit — including a Credit Union Transformation Fund to support the sector in England to scale. The Government will work closely with stakeholders to deliver on these interventions.