Asked by: Justin Madders (Labour - Ellesmere Port and Neston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the reduction in numbers of credit unions.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government is a strong supporter of credit unions, recognising the vital role they play in local communities throughout the country.
Through the Financial Services and Markets Act 2023, the Government allowed credit unions in Great Britain to offer a wider range of products and services, diversifying their income streams and enhancing their role in financial inclusion.
According to the latest data from the PRA, credit union membership in Great Britain has increased for the fifth consecutive quarter, reaching a record level of over 1.5 million. Their total assets have also increased to over £2.67 billion.
The Government continues to engage with the credit union sector to assess how they can best be supported moving forward.
Asked by: Navendu Mishra (Labour - Stockport)
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.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
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.
Mentions:
1: Hannah Bardell (SNP - Livingston) with credit unions, including my own in West Lothian—the great West Lothian Credit Union. - Speech Link
2: Andrew Griffith (CON - Arundel and South Downs) The reach of credit unions is significant. - Speech Link
3: Andrew Griffith (CON - Arundel and South Downs) We are doing a lot of work on that.Finally, as well as providing credit, credit unions are obliged to - Speech Link
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to increased mortgage interest rates, what steps his Department is taking to promote credit unions.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The pricing of mortgages is a commercial decision for lenders, including relevant credit unions, in which the Government does not intervene. However, we recognise this is a concerning time for mortgage borrowers.
On Friday 23 June the Chancellor met with the UK’s largest mortgage lenders, UK Finance and the Financial Conduct Authority to discuss how lenders will provide support for those who encounter problems keeping up with their mortgage payments. At this meeting, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments that was published on 26 June. The Charter sets out the standards signatory lenders, which includes some credit unions, will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period.
The Charter is in addition to the significant safeguards already in place for consumers in the mortgage market. Financial Conduct Authority rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. The Government has also taken measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, and protection in the courts through the Pre-Action Protocol.
More widely, the Government is taking forward amendments to the Credit Unions Act 1979 through the Financial Services and Markets Act (FSMA) 2023 to allow the credit union sector to grow, by offering a wider range of products and services to their members. FSMA 2023 is central to delivering the Government’s vision to grow the economy and create an open, sustainable, and technologically advanced financial services sector.
Found: To provide a forum to discuss issues which affect credit unions in Scotland.
Found: Cross -Party Group Annual Return Name of Cross -Party Group Cross -Party Group on Credit Unions
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, following reports of the shrinkage of the non-prime lending market, what steps they are taking to ensure that vulnerable customers have access to fair and regulated credit products.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government is committed to taking steps to widen access to affordable credit, and is overseeing a number of initiatives to support this goal.
Since 2019, the government has made £100 million of dormant assets funding available to Fair4All Finance to support their work on financial inclusion, and an additional £45 million for initiatives to tackle the elevated cost of living. The government has also provided Fair4AllFinance with £3.8m of funding to pilot a No-interest Loans Scheme, designed for consumers in vulnerable circumstances who would benefit from affordable rather than high-cost credit.
As part of the Financial Services and Markets Act 2023, the government has amended the Credit Unions Act 1979 so that credit unions in Great Britain can offer a wider range of products and services.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government what assessment they have made of the risk that higher education institutions succumb to pressure from student unions to undertake boycott divestment and sanction actions in relation to their investment and procurement decisions.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
The Government is aware that the BDS Movement has taken credit for divestments from Israeli companies carried out by universities following pressure from student campaigns. For example, the BDS Movement took credit for divestments from Israeli military suppliers by the University of Manchester in 2020 and procurement decisions by King’s College London and Southampton University. The Government is also aware of recent examples of student unions passing motions to lobby their universities to boycott and divest from Israeli companies, including for example Manchester University Student Union in 2022 and Warwick University Student Union in 2023. There are concerns that these campaigns can damage community cohesion and legitimise antisemitism. There are also examples overseas of the BDS Movement pressing universities to boycott or divest from Israeli companies for example in Norway or the United States of America. The Bill rightly applies to universities and higher education providers to prevent them succumbing to student union pressure in the future and to tackle this type of divisive activity on campuses.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government whether they are aware of any examples in the past five years of higher education institutions succumbing to pressure from student unions to undertake boycott divestment and sanction actions in relation to their investment and procurement decisions.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
The Government is aware that the BDS Movement has taken credit for divestments from Israeli companies carried out by universities following pressure from student campaigns. For example, the BDS Movement took credit for divestments from Israeli military suppliers by the University of Manchester in 2020 and procurement decisions by King’s College London and Southampton University. The Government is also aware of recent examples of student unions passing motions to lobby their universities to boycott and divest from Israeli companies, including for example Manchester University Student Union in 2022 and Warwick University Student Union in 2023. There are concerns that these campaigns can damage community cohesion and legitimise antisemitism. There are also examples overseas of the BDS Movement pressing universities to boycott or divest from Israeli companies for example in Norway or the United States of America. The Bill rightly applies to universities and higher education providers to prevent them succumbing to student union pressure in the future and to tackle this type of divisive activity on campuses.
Jul. 21 2009
Source Page: The Social Fund: a new approach response document. Incl. annex. 16 p.Found: These organisations, such as credit unions, could link customers up with other services. 2.1.2