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Credit Unions
16 July 2025
Lead MP
Katrina Murray
Cumbernauld and Kirkintilloch
Lab
Responding Minister
Torsten Bell
Tags
NHSEmployment
Word Count: 10086
Other Contributors: 16
At a Glance
Katrina Murray raised concerns about credit unions in Westminster Hall. A government minister responded.
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:
Lead Contributor
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.
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.
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.
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.
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
Government Response
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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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.