Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what support his Department is providing to Credit Unions to improve their governance policies.

The government remains committed to supporting credit unions, which provide vital services to financially under-served communities and contribute to the diversity of the UK’s financial services sector.

At Autumn Budget 2018, the Chancellor announced a two-year pilot of a new prize-linked savings scheme offered through credit unions. This will support the credit union sector through increased membership, awareness and deposits, as well as encouraging participants to build up savings to help them cope with financial shocks. The Chancellor also announced a new £2 million challenge fund to promote innovative solutions from the UK’s Fintech sector to address challenges faced by social and community lenders, including credit unions.

This Government believes improving governance in the sector is best led by the sector itself, and supports ABCUL’s work in this regard.