Expand credit unions to boost cheap credit to low-income people, Labour MPs urge Reeves

A group of Labour MPs are urging Chancellor Rachel Reeves to support the expansion of credit unions to provide affordable credit to low-income individuals. The MPs are advocating for amendments to the financial inclusion bill, including a requirement for housing associations to promote credit union membership to tenants. They also propose granting credit unions access to the government's Help to Save scheme. The call comes amid the 10th anniversary of UK military credit unions and highlights the need for alternatives to high-cost lenders, especially during the cost of living crisis. While UK credit union membership has grown, their lending capacity remains significantly smaller than other forms of household debt. The MPs believe expanding credit unions can address financial exclusion and encourage investment in communities.

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