Credit union changes will help more people to access affordable loans and savings
These reforms will help more people access affordable credit, build savings and reduce reliance on high-cost lenders, while supporting sustainable growth across the sector.
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Katie Wise
The Building Societies Association (BSA) welcomes HM Treasury plans to expand the mutuals sector by raising the cap on credit union membership.
The changes will increase the membership limit for credit unions from three million to ten million people. Eligibility will also widen to include students, local workers and relatives of existing members, reflecting the way people live and work today.
These reforms will help more people access affordable credit, build savings and reduce reliance on high-cost lenders, while supporting sustainable growth across the sector.
Sarah Harrison, Chief Executive of the Building Societies Association said:
“This is a practical change that will help credit unions grow and enable more people to access fair, straightforward financial services – both savings products and unsecured loans.
“Credit unions and building societies were founded on the same principles of putting members first and taking a long-term view to support the financial health of the communities they serve. Credit unions now have the opportunity to grow while staying true to that purpose.
“At a time when many household finances are under pressure, access to lower-cost borrowing and a safe place to save can make a real difference, including for those only able to save small amounts at a time.
“We look forward to continuing to work with the Government to support the growth of the mutual sector.”
[ENDS]
Press contacts:
press.office@bsa.org.uk
Notes to Editors:
The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £677 billion and together with their subsidiaries, hold residential mortgages of £493.4 billion, 29% of the total outstanding in the UK. They also hold £495.6 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 47% of all cash ISA balances.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff. In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.
The changes will increase the membership limit for credit unions from three million to ten million people. Eligibility will also widen to include students, local workers and relatives of existing members, reflecting the way people live and work today.
These reforms will help more people access affordable credit, build savings and reduce reliance on high-cost lenders, while supporting sustainable growth across the sector.
Sarah Harrison, Chief Executive of the Building Societies Association said:
“This is a practical change that will help credit unions grow and enable more people to access fair, straightforward financial services – both savings products and unsecured loans.
“Credit unions and building societies were founded on the same principles of putting members first and taking a long-term view to support the financial health of the communities they serve. Credit unions now have the opportunity to grow while staying true to that purpose.
“At a time when many household finances are under pressure, access to lower-cost borrowing and a safe place to save can make a real difference, including for those only able to save small amounts at a time.
“We look forward to continuing to work with the Government to support the growth of the mutual sector.”
[ENDS]
Press contacts:
press.office@bsa.org.uk
Notes to Editors:
The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £677 billion and together with their subsidiaries, hold residential mortgages of £493.4 billion, 29% of the total outstanding in the UK. They also hold £495.6 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 47% of all cash ISA balances.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff. In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.