Budget boosts credit unions

May 04 2009

The Association of British Credit Unions has welcomed the Chancellor’s announcement in last week’s Budget of an additional £18.75 million for the Growth Fund, which credit unions use to make affordable loans to people on low incomes. This will allow an extra 85,000 loans to be made over the next two years.

Mark Lyonette, Chief Executive of ABCUL, said: “Our credit union members are thrilled by the Government’s commitment to greatly increase the amount of money that will be made available through credit unions to help those most in need of financial help, who may otherwise turn to loan sharks and high cost doorstep lenders.

“The announcement in the Budget is a huge vote of confidence in the valuable work that credit unions are doing around Britain.”

Responding to a recent survey, 70 per cent of ABCUL credit unions reported an increase in demand for loans from members on a low income over the last year, with 32 per cent reporting that this increase was significant. These findings highlight the necessity of additional funding to help those who are being hardest hit by the recession.

Mr Lyonette added: “We’re pleased to see the Government recognises that, while it is important to make sure people who are having trouble paying mortgages are given assistance, there is also a need to ensure that money is available for unsecured lending for people on low incomes.”

Category: Credit unions