Legislation

In 2006, Ed Balls MP - then Economic Secretary to the Treasury - announced a review of the legislative framework for Credit Unions and Co-operatives. Since then a series of reviews and consultations have taken place which have produced two pieces of legislation:

. A Legislative Reform (Industrial and Provident Societies and Credit Unions 2010) Order - amongst other reforms, this will:

. Relax the 'common bond' opening credit union membership to many more people

. Allow credit unions to pay interest on deposits instead of a dividend

. Allow credit unions to serve groups and bodies corporate

. The Co-operative and Community Benefit Societies and Credit Unions Act 2010 which:

. Applies the Company Directors' Disqualification Act to credit unions

. Allows for relevant building society legislation to be applied to credit unions via secondary legislation following consultations

The World Council of Credit Unions (WOCCU) has previously described the current legislative framework in the UK as amongst the most restrictive in the world.

The changes currently going through Parliament will allow credit unions to reach out to many more people and develop new services to meet their needs.

Background to HM Treasury's review of legislation and full details of the Legislative Reform Order are available online.

ABCUL: Credit unions welcome progress on legislation

ABCUL – the Association of British Credit Unions – has welcomed steps taken in Parliament this week which will see increased access to safe and ethical financial services in communities and workplaces across the country.

Credit union delight at £73 million Government boost

Mark Lyonette, Chief Executive of ABCUL - the Association of British Credit Unions, has welcomed today's announcement that the Government is investing up to £73 million in credit unions over the next four years, and that the Post Office could play a central role in delivering credit union services.

ABCUL: Now there's an easier way to find your local credit union

Around 80% of people in England, Scotland and Wales can join a credit union because of where they live, work or the organisations they're members of, and this is growing all the time. Now there's one place where they can find out about the credit unions they can use.

ABCUL: Credit unions welcome Post Office plans

ABCUL - the Association of British Credit Unions - has welcomed today's policy statement from The Department for Business, Innovation and Skills (BIS) on its plans to secure the long term future of the Post Office.

ABCUL: Credit unions can help increase diversity in financial services

Speaking at a fringe event at the Conservative Party Conference, Mark Lyonette explained how credit unions now serve nearly a million people in England, Scotland and Wales and sought reassurance from Financial Services.