Credit Unions

Lord Deben Excerpts

Thursday 16th January 2014 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, I have just read that the noble Lord, Lord Freud, and Mr Iain Duncan Smith have joined the London Mutual Credit Union. It is open to all Members and the staff of both Houses to join that union. Part of the problem, as the noble Lord well knows, is that most credit unions are locally based and for other departments—such as the Home Office or DWP, with employees scattered all the way across the country—the cost of joining employees into a very large number of credit unions is rather complicated.

[Lord Deben (Con)]

My Lords, I wonder whether the Minister would accept that this Government are very much in favour of nudging. How much nudging is going on to get departments to take up this very big issue? The credit union movement is well worth supporting; it is supported on every side. I do not believe that it is helpful just to say that departments can make up their own minds. I hope that we can have some nudging.

[Lord Wallace of Saltaire]

My Lords, there is a lot of nudging going on but, as the noble Lord will know, there are employee-based contributions to credit unions and employer-provided contributions to credit unions. The Government are aware that it is not without cost to run an employer-based set of contributions, particularly, again, if you are trying to roll it out across the entire country, in which there are some 340 locally based credit unions.