Credit Unions

Lord Clarke of Hampstead Excerpts

Thursday 2nd February 2012 Lords Chamber

[Lord Freud]

The proportion is disappointingly small; it is 2 per cent. That compares with a figure of 44 per cent in the United States and 75 per cent in Ireland. It is a very small industry here. Our ambition is to double its size in the next five to seven years. Nevertheless, we need to look at various other financial instruments, particularly as we introduce universal credit.

[Lord Clarke of Hampstead]

My Lords, I am sure that the House is delighted that the report that the Minister asked for is coming. Should not part of the report state that local authorities should be encouraged to help with the start-up costs of credit unions, in particular with the very high council taxes that are levied on premises? I speak with experience of a very successful credit union in St Albans of which I am a member. Start-up costs are very difficult and local authorities could play a good part in helping to create these unions.

[Lord Freud]

Yes, my Lords, credit unions are local organisations. It is very important that social units in the locality help them. Just as important as local authorities are social housing groups. There are already 20 such groups working with credit unions, which is very important.