Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the role credit unions have played in supporting vulnerable people during the COVID–19 pandemic.

The Government recognises the contribution credit unions have made to support vulnerable people during the Covid-19 pandemic. Credit unions play a vital role in the financial wellbeing of their communities, providing an ethical home for their members’ savings, and affordable loans to those who may otherwise have to resort to high-cost lenders.

The Centre for Community Finance Europe (CFCFE) published research in May 2020, setting out the range of activities credit unions have undertaken to support their local communities during the Covid-19 pandemic, including adapting existing services and introducing new products. The research is available on the CFCFE website.

In April 2020, the Economic Secretary to the Treasury wrote to credit union trade bodies to thank frontline credit union staff for their efforts to continue to provide essential services to their members. Furthermore, the Economic Secretary has engaged with representatives from the credit union sector through the Consumer Finance Forum and Financial Inclusion Policy Forum, which has brought financial services and consumer group representatives together, to discuss how people can be best supported.

HMT officials also hosted a meeting with credit union trade bodies in June 2020 to understand their experiences of supporting members through the Covid-19 pandemic.