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<p>The government is 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. Over the last two financial years, the government has done
this by:</p><p> </p><ul><li><p>Announcing at Autumn Budget 2017, that where a credit
union’s membership conditions are based on locality, a credit union will be able to
increase the number of potential members it can have to from 2 to 3 million. The legislation
to make this change was laid in November 2017 and comes into force in April 2018.</p></li><li><p>Announcing
at Autumn Statement 2016 that, from 2018, an existing scheme which incentivises credit
union membership in communities at risk of being targeted by loan sharks, will be
expanded. This uses funds recovered under the Proceeds of Crime Act from convicted
loan sharks.</p></li><li><p>Contributing £600,000 to an initiative developed by the
Archbishop of Canterbury and Young Enterprise, to start savings clubs in primary schools
and educate young children in the benefits of saving. Lifesavers works with local
credit unions to help run savings clubs with schoolchildren, and is currently being
piloted in six primary schools.</p></li><li><p>Providing funding for the Credit Union
Expansion Project, delivered by the Association of British Credit Unions Ltd. In 2017,
three credit unions with a total membership of 16,500 began using an online banking
platform provided by this project.</p></li></ul>
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