Banks: Unbanked and Underbanked
Debate between Lord Bishop of Durham and Lord Ashton of Hyde
Lord Ashton of Hyde
My Lords, I tried to say that the whole point is to ensure that everyone who needs access to a bank account can have one. As the noble Lord will know, in the Budget this year the Chancellor designated nine banks under the payment accounts regulations to ensure that they provide access to bank accounts. I do not have all the precise numbers that the noble Lord asked for, but the policy commands support around the House for the view that whether or not you are on universal credit, everyone should have access to the banking system. That is exactly what this has achieved.
The Lord Bishop of Durham
My Lords, will the Minister comment on the place and role of credit unions in this whole purpose? The churches and many others see them as a vital part of bringing people into financial services. For me, in the north-east, I see that many people will still not go near a bank, but they will go to local community credit unions. Will the Government commit to further supporting that work?
Lord Ashton of Hyde
The right reverend Prelate puts his finger on an important issue. The Government are improving access to credit, most notably by supporting the credit union sector. We have invested £38 million in that sector through the credit union expansion project. We have provided half a million pounds to help Armed Forces personnel access credit union services. We have raised the maximum interest rate that credit unions can charge, so that they can operate more sustainably, and we have provided £650,000 to fund the Archbishop of Canterbury’s Task Group on Affordable Credit and Savings.