ABCUL: Credit union disappointment at Government decision

Tuesday, 22 June 2010 12:00 AM

ABCUL - the Association of British Credit Unions - has expressed its disappointment at the decision announced by the Government in today's Emergency Budget to scrap Saving Gateway.

Speaking on behalf of the sector, Mark Lyonette, Chief Executive of ABCUL, said: "Over 100 credit unions had already put in place plans so that they could start delivering the new savings product next month. They were looking forward to helping more low income consumers get the saving habit. It is disappointing that the Government should cancel this at the last minute.

"Credit unions will of course continue to work to encourage savings in their communities. They do this by providing easy ways to save and crucially by reducing the very high cost of credit for those on low incomes. This means people have more money in their pocket to start a savings habit. In the last four years credit unions have already helped nearly a quarter of a million people to save hundreds of pounds each in interest payments on small loans. We hope that the Government will continue to support credit unions in reducing the debt burden for low income consumers as a valuable way to encourage saving."

- e n d s -

Notes to Editor:

ABCUL is the main trade association for credit unions in England, Scotland and Wales. At the end of June 2009, ABCUL's 325 credit unions were managing nearly £450 million of members' savings on behalf of over 550,000 people, and had over £375 million out on loan.

ABCUL is the country's largest development, information and training network for new credit unions. It is a democratic, not-for-profit organisation and is improving day-to-day operations, legislation and regulation for all credit unions.

Credit unions are licensed deposit takers, authorised and regulated by the Financial Services Authority. They are covered by the Financial Services Compensation Scheme, so the first £50,000 of a member's savings are completely safe.

www.abcul.coop

For more information contact Shaun Fisher at Ethos public relations:
Tel: 0161 830 7640
Mobile: 07968 211664
E-mail: shaun.fisher@ethos-pr.com
Website: www.ethos-pr.com

Tags: