Maureen Burke
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Maureen Burke (Glasgow North East) (Lab)
It is a privilege to serve under your chairmanship, Mr Twigg. I thank my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray) for securing this important debate. I am delighted to join colleagues to speak about the essential and valuable role that credit unions play for many of my constituents in Glasgow North East.
Across Britain, non-profit credit unions provide financial services to their members, but they are much more than just financial institutions; they are community pillars. Historically associated with increasing access to banking facilities and supporting those who are excluded from other financial institutions, credit unions continue to adopt a community-first approach to the services they provide.
Multiple credit unions are accessed by my constituents, including New Easterhouse, Ruchill and Carntyne credit unions. All those unions have shown time and again how valuable they are. They provide affordable loans and savings options to families and individuals who might otherwise face challenges in accessing mainstream banking. They help individuals gain confidence in managing their money, building savings and accessing credit, often on much fairer terms than banks.
However, this is not just about money; credit unions are about dignity, empowerment and opportunity. One thing they are known for is loans. For many, they are a safe, ethical and affordable alternative to high-interest payday lenders and loan sharks. I know from stories that constituents have shared with me how those types of loans prey on poorer members of society and trap vulnerable people in a cycle of debt. Credit unions, on the other hand, operate on a simple but powerful principle: they are owned by and exist for their members. In the case of loans, that results in annual percentage rates being capped at fairer rates compared with the alternative. More generally, it means that every pound saved or borrowed stays within the community, helping people manage their money and improve their lives.
It is unsurprising that the number of credit union members has grown in the last decade. With that said, the sector is still much smaller than in countries such as Ireland, the USA and Canada. That presents an exciting opportunity for it to grow. It is by listening to voices in the sector that we can understand what can and should be done to support growth efforts.
I am supportive of the Association of British Credit Unions’ call to expand the common bond requirement so that more people can be served by a credit union. I am also interested to hear the Minister’s thoughts on the potential benefits of legislating for auto-enrolment payroll savings, which could be a great source of empowerment for people.
Credit unions are a force for good in our society. We should work with them to unlock financial opportunities for our constituents. Ultimately, supporting credit unions is about supporting people. I hope that together we can ensure that the credit unions in Glasgow North East and across the UK continue to be a beacon of hope and fairness for all our communities.