Credit Unions

Lord Newby Excerpts

Tuesday 8th March 2011 Lords Chamber

[Lord Sassoon]

My Lords, I am certainly happy to confirm that credit unions play an important part in the Government’s priority to see diversity and choice in financial services and to support financial inclusion, given that in areas of the highest economic and social deprivation credit unions are able to achieve the most impact. The credit union movement is growing significantly, with government support and following the support of the previous Government. We will certainly work to do whatever is reasonable to continue with that growth of the credit union movement.

[Lord Newby]

My Lords, does the Minister agree that a key role of credit unions is to provide basic bank accounts for people who are currently unbanked? Could he therefore confirm whether the £73 million that the Government are making available to credit unions will be used in part to set up a shared banking platform for credit unions that would be available in all post offices?

[Lord Sassoon]

My Lords, I am happy to confirm to my noble friend that Ministers expect the post office network to play a central role in enabling credit unions to reach more families. Part of the funding, which I have already mentioned, is going towards projects related to that end—projects that are in the capable hands of my noble friend Lord Freud. He is running with that project; it is in safe hands and the Post Office is central to it.