Credit Unions in Scotland, published yesterday by the Scottish Affairs Committee, examines the current state of the sector and sets out proposals for its future development.
According to the report, the provision of low-cost, responsibly-lent finance is crucial to mitigating the debt crisis, and encouraging a saving's habit is vital if we are to create a generation of financially responsible people. The credit crunch has led to a dearth of widely available credit for those on low incomes, so there has never been a better time for credit unions to build on their existing success and raise their public profile.
Mark Lyonette, chief executive of ABCUL, said: "Credit unions appreciate the wholehearted support for the sector spelt out in the report. Credit unions play a vital role in our communities and their services are popular and successful."
The report calls on the Government to provide financial backing to enable more credit unions to offer current accounts and encourages credit unions and the Post Office to work together to establish the best way to provide bank account facilities to the financially excluded.
It recommends that consideration should be given by the Scottish Government to raising the level of ring-fenced credit union funding to ensure that credit unions are able to provide the services they offer to all those in need of them. But the report does acknowledge that credit unions can apply to a £42 million pot of funding for social enterprise, something that ABCUL is encouraging its members to do.
The publication proposes that the Government should introduce a requirement on local authorities to make premises they own available to credit unions if they are vacant, and that an appropriate percentage of commercial premises in busy locations is let to non-profit organisations at a suitable rate.
It also says that the Government should provide funding to promote credit unions across the UK to a wider public as an integral part of a comprehensive strategy of financial education.
