The Government recognises the vital role of credit unions in the financial wellbeing of their communities, providing an ethical home for their members\u2019 savings and affordable loans to those who may otherwise have to resort to high-cost lenders.<\/p>
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Local authorities have significant freedoms to choose what investments they make and how to finance them. The Government funded £617m for the Local Authority Discretionary Grants Fund, as well as further funding for the Small Business Grant Fund. Both funds closed in August 2020. The Government has also provided £2 billion of discretionary grant funding for local authorities in England through the Additional Restrictions Grant, to support businesses in the local area, which credit unions may have benefited from. Local authorities determine how much funding to provide to businesses and exactly which businesses to target.<\/p>
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Separately, the Government has provided significant support for credit unions. In total, £96 million of dormant asset funding has been released to Fair4All Finance, the independent body set up by Government to distribute dormant assets funding to support financial inclusion. Fair4All Finance has so far provided over £15m in financial support to the community finance sector, including credit unions, as part of their COVID-19 response. This includes £12m of equity investments in community finance providers and £3.6m in COVID-19 grants, including funding from their £5m COVID resilience fund. It also includes an expanded Affordable Credit Scale-up Programme, which aims to improve the access and availability of affordable credit, and which I expect to be of benefit to credit unions.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4051", "label" : {"_value" : "Biography information for John Glen"} } , "answeringMemberConstituency" : {"_value" : "Salisbury"} , "answeringMemberPrinted" : {"_value" : "John Glen"} , "dateOfAnswer" : {"_value" : "2021-09-10", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-09-10T07:04:01.477Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-09-07", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Credit Unions"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the levels of local authority support for credit unions.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4268", "label" : {"_value" : "Biography information for Steve Reed"} } , "tablingMemberConstituency" : {"_value" : "Croydon North"} , "tablingMemberPrinted" : [{"_value" : "Steve Reed"} ], "uin" : "44358"} , {"_about" : "http://data.parliament.uk/resources/1311566", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1311566/answer", "answerText" : {"_value" : "
HM Treasury officials have regularly engaged with the Financial Conduct Authority and Prudential Regulation Authority to understand the impact of the COVID-19 pandemic on the credit union sector. I have also engaged with representatives from the credit union sector through the Consumer Finance Forum and Financial Inclusion Policy Forum, which are bringing financial services and consumer group representatives together to discuss how to best support people through this period.<\/p>
Fair4All Finance, the independent body set up by Government 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 during the COVID-19 pandemic. On 20 May 2020, the Government announced that additional funding through the dormant assets scheme would be released immediately to Fair4All Finance. This included an expanded Affordable Credit Scale-up Programme, which aims to improve the access and availability of affordable credit. I am also aware that credit unions have had access to wider COVID-19 support schemes, including the Coronavirus Job Retention Scheme, and grant funding from local authorities.<\/p>Capital requirements for credit unions are a matter for the Prudential Regulation Authority (PRA). In March 2020, the PRA concluded its consultation into simplifying the capital regime for credit unions. This reduced complexity by removing the link between a credit union\u2019s activities and membership with capital requirements, removed the old 2% capital buffer, and introduced a graduated rate approach to capital requirements. These proposals were broadly supported by the credit union sector.
<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4051", "label" : {"_value" : "Biography information for John Glen"} } , "answeringMemberConstituency" : {"_value" : "Salisbury"} , "answeringMemberPrinted" : {"_value" : "John Glen"} , "dateOfAnswer" : {"_value" : "2021-04-27", "_datatype" : "dateTime"} , "groupedQuestionUIN" : [{"_value" : "185969"} , {"_value" : "185971"} , {"_value" : "185972"} ], "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-04-27T14:31:24.333Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-04-22", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Credit Unions"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what representations he has received on changing credit union capital requirements; and if he will make a statement.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4463", "label" : {"_value" : "Biography information for Chris Stephens"} } , "tablingMemberConstituency" : {"_value" : "Glasgow South West"} , "tablingMemberPrinted" : [{"_value" : "Chris Stephens"} ], "uin" : "185970"} , {"_about" : "http://data.parliament.uk/resources/1311118", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1311118/answer", "answerText" : {"_value" : "
HM Treasury officials have regularly engaged with the Financial Conduct Authority and Prudential Regulation Authority to understand the impact of the COVID-19 pandemic on the credit union sector. I have also engaged with representatives from the credit union sector through the Consumer Finance Forum and Financial Inclusion Policy Forum, which are bringing financial services and consumer group representatives together to discuss how to best support people through this period.<\/p>
Fair4All Finance, the independent body set up by Government 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 during the COVID-19 pandemic. On 20 May 2020, the Government announced that additional funding through the dormant assets scheme would be released immediately to Fair4All Finance. This included an expanded Affordable Credit Scale-up Programme, which aims to improve the access and availability of affordable credit. I am also aware that credit unions have had access to wider COVID-19 support schemes, including the Coronavirus Job Retention Scheme, and grant funding from local authorities.<\/p>
Capital requirements for credit unions are a matter for the Prudential Regulation Authority (PRA). In March 2020, the PRA concluded its consultation into simplifying the capital regime for credit unions. This reduced complexity by removing the link between a credit union\u2019s activities and membership with capital requirements, removed the old 2% capital buffer, and introduced a graduated rate approach to capital requirements. These proposals were broadly supported by the credit union sector.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4051", "label" : {"_value" : "Biography information for John Glen"} } , "answeringMemberConstituency" : {"_value" : "Salisbury"} , "answeringMemberPrinted" : {"_value" : "John Glen"} , "dateOfAnswer" : {"_value" : "2021-04-26", "_datatype" : "dateTime"} , "groupedQuestionUIN" : [{"_value" : "185424"} , {"_value" : "185425"} , {"_value" : "185427"} ], "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-04-26T11:10:27.887Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-04-21", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Credit Unions"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what representations he has received on changing credit union capital requirements; and if he will make a statement.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4463", "label" : {"_value" : "Biography information for Chris Stephens"} } , "tablingMemberConstituency" : {"_value" : "Glasgow South West"} , "tablingMemberPrinted" : [{"_value" : "Chris Stephens"} ], "uin" : "185426"} , {"_about" : "http://data.parliament.uk/resources/1275783", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1275783/answer", "answerText" : {"_value" : "
The Government recognises the vital role credit unions play in the financial wellbeing of their communities, providing an ethical home for their members\u2019 savings, and affordable loans to those who may otherwise have to resort to high-cost lenders.<\/p>
The Chancellor announced at Budget 2020 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. The Government is engaging with sector representatives and carefully assessing options before bringing forward legislation to ensure that we are delivering reforms which meet members\u2019 needs and support the development of the credit union sector.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4051", "label" : {"_value" : "Biography information for John Glen"} } , "answeringMemberConstituency" : {"_value" : "Salisbury"} , "answeringMemberPrinted" : {"_value" : "John Glen"} , "dateOfAnswer" : {"_value" : "2021-01-18", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-01-18T12:23:23.88Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-01-12", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Credit Unions"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of bringing forward legislative proposals to allow credit unions to offer (a) insurance services and (b) credit card services.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/177", "label" : {"_value" : "Biography information for Gareth Thomas"} } , "tablingMemberConstituency" : {"_value" : "Harrow West"} , "tablingMemberPrinted" : [{"_value" : "Gareth Thomas"} ], "uin" : "136430"} , {"_about" : "http://data.parliament.uk/resources/1250491", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1250491/answer", "answerText" : {"_value" : "
The Government recognises the vital role credit unions play in the financial wellbeing of their communities, providing an ethical home for their members\u2019 savings, and affordable loans to those who may otherwise have to resort to high-cost lenders.<\/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\u2019 needs and support the development of the credit union sector.<\/p>
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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>
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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>
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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>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4051", "label" : {"_value" : "Biography information for John Glen"} } , "answeringMemberConstituency" : {"_value" : "Salisbury"} , "answeringMemberPrinted" : {"_value" : "John Glen"} , "dateOfAnswer" : {"_value" : "2020-11-17", "_datatype" : "dateTime"} , "groupedQuestionUIN" : [{"_value" : "113472"} , {"_value" : "113473"} , {"_value" : "113474"} ], "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-11-17T12:01:00.79Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-11-10", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Credit Unions"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, when he plans to allow credit unions to (a) provide loans for members to buy cars, (b) offer insurance products to members and (c) offer credit cards; and if he will make a statement.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/177", "label" : {"_value" : "Biography information for Gareth Thomas"} } , "tablingMemberConstituency" : {"_value" : "Harrow West"} , "tablingMemberPrinted" : [{"_value" : "Gareth Thomas"} ], "uin" : "113471"} , {"_about" : "http://data.parliament.uk/resources/1243997", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1243997/answer", "answerText" : {"_value" : "
According to the latest data on credit unions published by the Prudential Regulation Authority, the membership of credit unions in the first quarter of 2020 by region of the UK is given below:<\/p>
<\/p>
Region<\/strong><\/p><\/td> Membership<\/strong><\/p><\/td><\/tr> England<\/p><\/td> 923,321<\/p><\/td><\/tr> Wales<\/p><\/td> 81,766<\/p><\/td><\/tr> Scotland<\/p><\/td> 423,554<\/p><\/td><\/tr> Northern Ireland<\/p><\/td> 707,271<\/p><\/td><\/tr><\/tbody><\/table> <\/p> Credit Union Membership<\/p><\/td><\/tr> Year<\/p><\/td> Membership numbers<\/p><\/td><\/tr> 2009<\/p><\/td> 1,259,183<\/p><\/td><\/tr> 2010<\/p><\/td> 1,350,039<\/p><\/td><\/tr> 2011<\/p><\/td> 1,427,812<\/p><\/td><\/tr> 2012<\/p><\/td> 1,565,724<\/p><\/td><\/tr> 2013<\/p><\/td> 1,660,610<\/p><\/td><\/tr> 2014<\/p><\/td> 1,758,632<\/p><\/td><\/tr> 2015<\/p><\/td> 1,850,503<\/p><\/td><\/tr> 2016<\/p><\/td> 1,920,709<\/p><\/td><\/tr> 2017<\/p><\/td> 1,969,152<\/p><\/td><\/tr> 2018<\/p><\/td> 2,019,873<\/p><\/td><\/tr> 2019<\/p><\/td> 2,070,452<\/p><\/td><\/tr><\/tbody><\/table> <\/p> Credit Union Membership<\/p><\/td><\/tr> Year<\/p><\/td> Membership numbers<\/p><\/td><\/tr> 2009<\/p><\/td> 1,259,183<\/p><\/td><\/tr> 2010<\/p><\/td> 1,350,039<\/p><\/td><\/tr> 2011<\/p><\/td> 1,427,812<\/p><\/td><\/tr> 2012<\/p><\/td> 1,565,724<\/p><\/td><\/tr> 2013<\/p><\/td> 1,660,610<\/p><\/td><\/tr> 2014<\/p><\/td> 1,758,632<\/p><\/td><\/tr> 2015<\/p><\/td> 1,850,503<\/p><\/td><\/tr> 2016<\/p><\/td> 1,920,709<\/p><\/td><\/tr> 2017<\/p><\/td> 1,969,152<\/p><\/td><\/tr> 2018<\/p><\/td> 2,019,873<\/p><\/td><\/tr> 2019<\/p><\/td> 2,070,452<\/p><\/td><\/tr><\/tbody><\/table> <\/p> |