In 2014, the Government undertook a call for evidence to understand the appropriate steps that could be taken to support the credit union sector. Subsequently, the maximum interest a credit union can charge on loans was raised from 2% to 3% per month, and the upper limit on the geographical common bond was raised from 2 to 3 million people.<\/p>
<\/p>
The Government continues to be open to considering the case for further reform. ABCUL, the sector\u2019s largest trade body, is currently carrying out a sector-wide consultation which is due to conclude later this year. HMT will consider its conclusions in the development of future credit union policy.<\/p>
<\/p>
At Autumn Budget 2018, the Government also announced a package of measures to support the availability of affordable credit, including:<\/p>
o A £2 million affordable credit challenge fund, harnessing the UK\u2019s FinTech sector to address challenges faced by social and community lenders, including credit unions.<\/p>
o A change in the regulatory boundary of credit broking to make it easier for registered social landlords such as housing associations to refer their tenants to social and community lenders.<\/p>
o A prize-linked savings pilot scheme, to encourage the growth of the credit union sector and encourage consumers to build up their personal savings. We hope credit unions will be able to use the deposits gained from their participation in the scheme to increase their overall lending.<\/p>
o A feasibility study to design a pilot for a UK No-Interest Loans Scheme.<\/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" : "2019-09-03", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-09-03T08:11:12.103Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2019-07-23", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Financial Institutions"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, whether the Government plans to bring forward a review of legislation for Co-op societies, Credit Unions and Community Benefit Societies as proposed by the Financial Conduct Authority in its 22 July 2019 report Alternatives to high-cost credit.", "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" : "280908"} , {"_about" : "http://data.parliament.uk/resources/1141475", "AnsweringBody" : [{"_value" : "Department for Digital, Culture, Media and Sport"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1141475/answer", "answerText" : {"_value" : "
An appropriate body could not be found that was willing and able to take on the role of Principal Regulator for charitable community benefit societies. Therefore, there are currently no plans to appoint a Principal Regulator for these charities. However we will keep this position under review. The Charities Act 2006 does not require the appointment of a principal regulator and exempt charities are still bound by the general principles of charity law.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4027", "label" : {"_value" : "Biography information for Baroness Morgan of Cotes"} } , "answeringMemberConstituency" : {"_value" : "Loughborough"} , "answeringMemberPrinted" : {"_value" : "Nicky Morgan"} , "dateOfAnswer" : {"_value" : "2019-10-08", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-10-08T07:59:26.957Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "10"} , "answeringDeptShortName" : {"_value" : "Digital, Culture, Media and Sport"} , "answeringDeptSortName" : {"_value" : "Digital, Culture, Media and Sport"} , "date" : {"_value" : "2019-07-23", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Charities: Taxation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Secretary of State for Digital, Culture, Media and Sport, when she plans to appoint a Principal Regulator for Exempt Charities using the community benefit society legal form; and if she 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" : "280909"} ], "itemsPerPage" : 10, "page" : 0, "startIndex" : 1, "totalResults" : 2, "type" : ["http://purl.org/linked-data/api/vocab#ListEndpoint", "http://purl.org/linked-data/api/vocab#Page"]} }