Financial Services and Markets Bill [Lords]

Josh Fenton-Glynn Excerpts

Tuesday 10th November 2026 Commons Chamber

[David Burton-Sampson]

My hon. Friend must have been reading my speech, because I am about to talk about financial inclusion, and I agree with her. Having worked in banking when child trust funds came out, I know that they were a fantastic initiative by the former Labour Government, but we now need to close the gap to ensure that those adults—they are no longer children—can get access to the funds, whoever they are.

In the drive for greater financial inclusion, the credit union model can be incredibly effective, so increasing the common bond limit from 3 million members to 10 million members is a positive move forward. While that measure is not in the Bill, I am pleased to hear that it will be implemented via secondary legislation. Relaxing common bond rules on who can be a member—for example, to relatives of an existing member, people who live in the same household as a member, retirees from a firm in the local area, and students who study but do not live in the area—is an excellent feature of the Bill. Those moves are all welcomed by the Association of British Credit Unions Ltd, Fair4All Finance and the Building Societies Association.

Credit unions are invaluable assets in ensuring that people are not financially excluded when they need support the most. An unexpected expense does not disappear because someone cannot access mainstream credit. Expanding access to safe and affordable alternatives to high-cost and illegal lending should remain an important part of the Government’s wider financial inclusion agenda. We should also recognise the key role that credit unions play in encouraging members to save on a regular basis.

I want to see more credit unions opening and expanding across the country. For example, in my constituency, we have access to only one credit union, which is in north London. However, if I search by my childhood home in Liverpool, I see that I would have had access to five different credit unions. In fact, Fair4All Finance carried out research involving 1,000 members across those five credit unions and found that they offered increased access to essential affordable credit, supporting people’s financial resilience. Nearly half of the members’ most recent loans were below £1,000—a market that is not typically served by mainstream lenders, but vital for households managing small ups and downs. The credit unions encouraged the development of saving habits, with nine in 10 members reporting that they saved regularly, and half of the members making regular deposits of £20 or more—that is not much, but it is better than nothing—including those on low incomes. Around eight in 10 respondents reported a positive impact on their wellbeing, mental and physical health and family life as a result of their membership.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

My hon. Friend is making a powerful point, and he is right to identify credit unions as a brilliant opportunity. In America, some 145 million people use credit unions, compared with a very small amount of the British population. How can we catch up with our transatlantic cousins?

[David Burton-Sampson]

I agree with my hon. Friend; I was just about to conclude by saying that the continued growth of credit unions and the CDFI market is essential. I encourage the Minister and her team to continue to remain open to further options for expanding reach, including to SMEs, so that we can truly drive forward good growth in every postcode.