Credit Union Feasibility Study

Thursday 10th May 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Steve Webb)]

The Government have previously announced that we will work with credit unions to look at ways in which the future progress of this sector can best be supported.

A feasibility study looking at how credit unions could become sustainable and what more can be done to grow this sector, so that the affordable credit they offer gets to more people who need it, is now complete.

Credit unions have been doing a good job and we want to work with them to do more to give people on low incomes a real alternative to high cost lenders and loan sharks.

The feasibility study showed there is a market and demand from low income consumers for modern banking products and services, and that the total market could be as large as 7 million people.

Credit unions are ideally placed, serving their local communities, to help meet this demand and serve an additional 1 million people taking their membership up to 2 million.

So we are today publishing the feasibility study report to seek responses on the recommendations and what it means for the sector to ensure our plans reflect these views.

I will place a copy of the feasibility study report in the House Library later today.