Credit Unions
Debate between Lord Grayling and Andrew Smith(13 years ago)
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Chris Grayling
I pay tribute to all those involved. This is the essence of the credit union movement, and indeed the essence of the co-operative movement as a whole. If I have one regret politically, looking back over history, it is that the co-operative movement found itself on the left of politics rather than the right. The co-operative spirit has much in common with the spirit that we on the Government side of the House represent. Many of the changes that we are putting in place are designed to try and encourage people to work together. Within the credit union movement, we find that writ large.
As a result of the changes in the review, credit unions will be able to pay a guaranteed rate of interest on members’ savings. We hope that will help them to attract more savings, and so make more affordable credit available in the community. We also want them to do more. We want them to look to the future, reach out to offer new products to many more potential members, and work to provide the services that landlords and their other partners want. We need them to become more efficient, better known and more attractive—effectively, to move to the next level of potential for the credit union movement.
Credit unions need to reduce their costs, increase their capacity, and operate more efficiently by sharing back-office activity. The right hon. Member for East Ham asked a question about that. The creation of a central financial wholesale organisation for credit unions is being examined by the feasibility study, which is looking at a wide range of different options. It is being led by a project steering committee, supported by the Department for Work and Pensions. I am pleased that the issue of Jam Jar accounts was raised. Financial products such as Jam Jar accounts are very much part of the study.
Mr Andrew Smith
I am very grateful to the Minister for giving way. He mentioned the feasibility study and the welcome agenda of work it is addressing. Can he give us any indication of when the study is likely to report?