Commons Sense

House of Commons · Ministers' Questions

Credit Unions

Tuesday 28 June 2022 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The Government released 100 million of dormant assets funding to Fair4All Finance to support financial wellbeing.
  • The Credit Union Act 1979 will be amended to allow credit unions to offer additional financial services.
  • The Minister is seeking a meeting with the hon. Member for Preston regarding a private Member's Bill.

Topics (select to filter)

Questions & Answers

Q1 Simon Fell
Economy
Context

The credit union sector faces significant barriers hindering its growth, including legal restrictions on the size of their common bond area. The government is amending the Credit Union Act 1979.

Question

What fiscal steps his Department is taking to support the credit union sector. I should declare an interest as a former chair of a credit union. Credit unions are some of the largest providers of low-cost credit and are more important than ever given the cost of living issues at the moment, but there are significant barriers hindering their growth.

Answer from John Glen

The Government support the credit union sector and recognise the contribution that they make to our financial services sector more broadly and to the communities that they serve. The Government have released £100 million of dormant assets funding to Fair4All Finance to support the financial wellbeing of people in vulnerable circumstances.

Partly answered

Not addressed: Specific plans to look at issues such as legal restrictions on common bond area were not addressed

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Q2 Simon Fell
Business & Trade
Context

The government is amending the Credit Union Act 1979 to allow credit unions to offer more services. Legal restrictions on common bond area hinder growth, but evidence needs to be seen.

Question

What plans does he have to look at issues such as this to support credit union growth and to give as many people as possible an opportunity to stay away from doorstep lenders and loan sharks?

Answer from John Glen

I thank my hon. Friend for his question. He is an expert in this area, given his role in Barrow. We will be amending the Credit Union Act 1979 shortly, which will allow credit unions to offer more services such as hire purchase, conditional sale agreements and so on. With respect to the common bond—that being the link for all credit union members—we will need to see evidence that it supports the needs of the sector, but I have been working closely with the Association of British Credit Unions Limited, the trade body for 70% of credit unions, on its “Vision 2025” document. I visited its conference recently, and we will bring measures forward shortly in the financial services and markets Bill.

Partly answered

Not addressed: Specific support for Sir Mark Hendrick's private Member's Bill was not addressed

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Q3 Gareth Thomas Labour (Co-op) Harrow West
Economy
Context

The government has had warm words for credit unions but slow to provide legal reforms. The private Member's Bill of my hon. Friend the Member for Preston (Sir Mark Hendrick) aims to drive significant expansion.

Question

Will the Minister now back the private Member's Bill of my hon. Friend the Member for Preston (Sir Mark Hendrick) and require all public bodies to promote credit unions going forward?

Answer from John Glen

Over the years, we have had considerable dialogue on many of these measures. As I said, the legislation that the sector is looking for will be introduced in the next few weeks. I am aware of the Bill of the hon. Member for Preston (Sir Mark Hendrick), and I am seeking to have a meeting with him imminently—in the next few days or next week—to discuss it and to see what we can support.

Partly answered

Not addressed: Specific backing for Sir Mark Hendrick's private Member's Bill was not addressed

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