ABCUL welcomes sector funding

The Association of British Credit Unions (ABCUL) has welcomed the announcement that the government is to fund the credit union sector to the tune of £6 million. The announcement was made in the Government’s document on financial inclusion which outlines the government’s financial inclusion strategy for 2008 to 2011.

The funding will be made available to credit unions through the Department for Work and Pensions’ Growth Fund. It will support the creation of new lenders in parts to the country where there is insufficient supply and will fund investment in skills training for staff and volunteers. It will also support credit unions who invest in transactional banking capability.

‘We’re delighted that the Government has allocated a further £6 million from its Financial Inclusion Fund to credit unions,’ said Mark Lyonette, Chief Executive of ABCUL.’This is a further demonstration by the Government of its commitment to the good work that our sector is doing in making affordable credit and banking services available to the financially excluded.’

He added: ‘We are especially pleased to see support for the new credit union current account as we believe this is a landmark product in the financial services sector.’ The credit union current account will help many more people to have affordable banking services, in line with the government’s belief that everyone should be able to manage their money securely and effectively through access to a bank account.

At the launch, Ed Balls MP, Economic Secretary to the Treasury, said, ‘We have made real progress on financial inclusion but there is still a lot more to do. Tackling financial exclusion is essential for both our economic prosperity and for social justice. It is good for individuals, for society and the economy as a whole. I look forward to working with everyone to drive this agenda forwards in the coming months.’