The UK Government has set out reforms to the rules on who can join credit unions.
It said the reforms follow the Call for Evidence on credit unions’ common bond rules launched after the Chancellor’s first Mansion House speech.
The reforms will include:
- Bigger credit unions, serving more people: Government will raise the cap on locality-based credit unions from three million to 10 million potential members, making it easier for them to grow and merge.
- Students included: Students will be able to join locality-based credit unions, alongside people who live or work in the area.
- Modern rules for families and working lives: Credit unions will be able to serve more relatives and household members, and members will be able to stay with (or join) their credit union after retirement as full members.
Economic Secretary to the Treasury Lucy Rigby said:
“These reforms will help more people get access to affordable credit and a safe place to save, so families have a real alternative to high-cost credit.
“We’re delivering on our manifesto pledge to grow the mutual sector by backing credit unions to expand and serve more communities. It’s another step in making financial services more accessible and supporting people to build financial resilience.”
