Prime Minister States Government Commitment to Supporting Credit Unions
21 Jan 11
The Prime Minister, David Cameron, this week took the opportunity during the weekly set-piece event, Prime Minister’s Questions, to state the Government’s commitment to supporting the credit union sector.
In response to a question from Tom Blenkinsop MP concerning the government’s policy on illegal money lending, David Cameron replied: “I think there is unity across the House that we should try to encourage credit unions and try to get people out of the hands of loan sharks. That is our policy and that is what we want to do [...].”
Elsewhere in the Commons a debate was called by Sheila Gilmore MP around the provision of basic bank accounts in Scotland in which Financial Secretary to the Treasury, Mark Hoban MP, stated the Government’s support for credit union services to be made available through the Post Office.
Mark Hoban, said: “The hon. Member for Edinburgh East [Sheila Gilmore] also asked about support for credit unions and post offices working together. There has been much discussion about that in recent months, and there is already a lot of co-operation between post offices and credit unions. For example, credit union current account holders can access their accounts through the post office, and more thought is being applied to that area.”
Mark Lyonette, ABCUL Chief Executive, said: “We are delighted to see David Cameron underline the Government’s commitment to supporting credit unions in Prime Minister’s Questions. To do so on such a high profile platform is an excellent endorsement of the fantastic contribution credit unions are making to the financial inclusion agenda.
“Assisting the victims of loan sharks though, is only one area of credit unions’ role. As Mark Hoban rightly points out, there is a role for credit unions in the provision of current account services, a role in developing the Post Office’s financial services offering and a role in generally providing competition and choice in banking which drives up standards and increases the stability of the financial system.
“A growing, strong credit union sector is in the interests of everyone and to see the Government commit to this is a very welcome recognition.”
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