Question to the HM Treasury:

To ask Her Majesty's Government what support they provide to the credit union sector in the UK.

At Autumn Budget 2018, the Government announced a package of measures to support credit unions, and other social and community lenders, including:

• A £2 million affordable credit challenge fund, harnessing the UK’s FinTech sector to address challenges faced by social and community lenders, including credit unions. Six finalists were selected in October 2019, receiving initial funding of £150,000.
• A change in the regulatory boundary of credit broking to make it easier for registered social landlords such as housing associations to refer their tenants to social and community lenders.
• A prize-linked savings pilot scheme, to encourage the growth of the credit union sector, and encourage consumers to build up their personal savings. This pilot launched on 17 October, International Credit Union Day, in 15 credit unions across the country. Over 6,000 accounts had been opened by the end of January 2020.
• A feasibility study for a UK No-Interest Loans Scheme.

Regulation of the credit union sector is a matter for the Prudential Regulation Authority (PRA). The PRA concluded a consultation on a simplified, proportional capital requirement regime for credit unions on 24 January 2020.