Commons Sense

House of Commons · Westminster Hall

Credit Unions

16 July 2025 · 16 other contributors · 10,086 words

Opened by Katrina Murray Lab Cumbernauld and Kirkintilloch

Responding minister: Torsten Bell

Economy

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

Read the full transcript on Parliament.uk

At a glance

Katrina Murray raised concerns about credit unions in Westminster Hall. A government minister responded.

Key points

  • Katrina Murray highlighted her membership with the NHS credit union since its inception at the Southern General hospital in Glasgow.
  • She raised concerns about regulatory issues faced by credit unions, citing the application of commercial lending standards that are not suitable for mutuals.
  • Katrina Murray urged the Minister to ensure regulatory clarity and support modernisation efforts by allowing investment in Credit Union Service Organisations (CUSOs).

Key requests to Government

Katrina Murray urged the Minister to engage with these concerns and ensure regulatory clarity that supports rather than stifles credit unions. She also called for support in modernisation efforts by allowing investment in Credit Union Service Organisations (CUSOs) which could help share IT, compliance and admin systems.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Katrina Murray Lab Cumbernauld and Kirkintilloch

At the outset of this debate, Katrina Murray highlighted her long-standing membership with the NHS credit union, which she first joined as a workplace credit union. She noted that the organisation began at the Southern General hospital in Glasgow to help low-paid staff and now has over 24,000 members across Scotland and parts of England. However, she also raised significant concerns about regulatory issues faced by credit unions, including the application of commercial lending standards which were never intended for mutuals, creating uncertainty and stifling growth.

Other contributors (16)
  • Carla Lockhart DUP Upper Bann

    The legislation in Northern Ireland is antiquated, limiting credit unions to loans and savings only. Carla suggests learning from developments in Great Britain to address this issue.

  • Chris Bloore Lab Redditch

    His town of Redditch has lost three credit unions over the last decade. He supports robust regulation but also promoting positive alternatives such as credit unions, which protect vulnerable people from speculative and high-interest financial products.

  • Chris Kane Lab Stirling and Strathallan

    Encourages public bodies to support credit unions by banking with them, highlighting the positive impact this can have on both the credit union and the community it serves.

  • Clive Jones Con Wokingham

    Securing the debate highlights the importance of credit unions in providing ethical lending and financial inclusion to communities. Discussed Beth’s story and highlighted the importance of credit unions in providing affordable financial services to communities.

  • Zubir Ahmed Lab Glasgow South West

    Dr Ahmed congratulated credit unions in his constituency for their contributions to the community and highlighted an imbalance between England and Scotland regarding dormant assets from the Bank of England being used as capital to fund credit unions.

  • Edward Morello LD West Dorset

    There should be proportionality in regulation for smaller credit unions, allowing them to innovate without the same burdens as larger ones.

  • Gregory Campbell DUP East Londonderry

    Credit unions could embrace market-based savings products provided they have the capacity and willingness to do so. This would allow everyone involved with credit unions to benefit over the longer term.

  • Irene Campbell Lab North Ayrshire and Arran

    Credit unions are vital for affordable loans and financial freedom. Volunteering plays a key role in their success, as seen in Stevenston where volunteers provided essential services.

  • Jim Shannon DUP Strangford

    Credit unions have doubled membership and assets over the past decade, with 34% of Northern Ireland's population now saving with a credit union. Jim highlights the importance of financial stability and support for local credit unions.

  • Katrina Murray SNP Linlithgow and East Falkirk

    Credit unions are not just financial institutions but community institutions, offering dignity, access, and inclusion where commercial lenders often do not.

  • Kenneth Stevenson Lab Airdrie and Shotts

    Credit unions offer safe places to save, fair loans, and practical help. They need support for awareness-raising, partnerships with local employers, and digital modernisation.

  • Mark Garnier Con Wyre Forest

    Credit unions represent the first rung on the financial ladder, offering loans to those excluded by mainstream institutions. While the number of credit unions has decreased due to strategic mergers, membership increased by a third over the past decade.

  • Martin Rhodes Lab Glasgow North

    Scotwest credit union in Glasgow has over 36,000 members with a loan book of £68.9 million as of September 2024. It focuses on broadening financial inclusion and supporting members' financial wellbeing. Supports stronger rights for buy now, pay later users while advocating for more support for credit unions. He highlights the importance of credit unions in protecting vulnerable communities from predatory lending practices.

  • Maureen Burke Lab Glasgow North East

    Speaks about the essential role of credit unions in providing affordable loans and savings options to families, helping individuals manage their money better. She also supports expanding common bond requirement for more access. Stressed that growth in the mutual sector means broad economic participation, aiding all levels of society.

  • Brackenridge Lab Wolverhampton North East

    Emphasized the positive impact of mutuals on local high streets, job creation, and economic participation.

  • Sureena Brackenridge Lab Wolverhampton North East

    Credit unions like the Wolverhampton City credit union serve over 10,000 members with £4.1 million in savings and £3.7 million in loans. They provide vital support for families to avoid high-cost lenders and build financial security.

Government Response

Torsten Bell

The Parliamentary Secretary to the Treasury

Acknowledged the importance of credit unions and announced measures such as publishing a call for evidence on reforming common bonds, asking regulators to produce a report on the mutuals landscape by year-end, and welcoming an industry-led council. Addressed concerns about trust and accountability underpinning common bonds while considering next steps based on sector feedback. The Government recognise the important role credit unions play in our economy: helping individuals, strengthening communities, and as a major player in any attempt to make society and the economy genuinely financially inclusive.

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