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<p>The Government recognises the vital role credit unions play 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.</p><p>The Chancellor
announced at Budget earlier this year that the Government intends to bring forward
changes to the Credit Unions Act to allow credit unions to offer a wider range of
products and services. This will be done at a future legislative opportunity. The
Government is carefully considering options before bringing forward legislation to
ensure that we are delivering reforms which meet members’ needs and support the development
of the credit union sector.</p><p> </p><p>Fair4All Finance, the independent body set
up to distribute dormant assets funding to support financial inclusion, has set up
a £5 million resilience fund to support credit unions and community development finance
institutions in England through the coronavirus pandemic. Fair4All Finance has also
launched its Affordable Credit Scale-up Programme, designed to provide tailored support
to sustainably scale affordable credit.</p><p> </p><p>The Government has no plans
to require large employers to offer payroll deductions to allow employees to join
and save with a credit union.</p><p> </p><p>In Budget 2018, the Government announced
a prize-linked savings pilot called PrizeSaver. This is currently operating in 15
credit unions across the country, helping to support the sector through increased
membership, awareness and deposits, as well as encouraging participants to build up
savings to help them cope with financial shocks. The pilot is scheduled to end in
March 2021. The Government has no plans to allow credit unions to offer Premium Bonds
or other National Savings and Investments products.</p>
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