Working with Employers

Opportunities for Employers

Tens of thousands of employees in Britain benefit from credit union membership which give them an easy and convenient way to save and borrow.  Through payroll deduction, savings are taken straight from wages before they are paid into bank accounts.  This painless way of saving helps people get a savings habit and also gives them access to affordable loans,  other financial services and a source of information about money matters.  Money worries are a major cause of stress and helping people to better manage their money is an easy way to reduce this stress and make for a happier and more productive workforce. 

Changes to the Credit Unions Act 1979 have allowed credit unions to extend services to new groups of people, and accept corporate bodies into membership for the first time.   

The main changes

Allowing credit unions to serve more than one group of people

Credit unions no longer have to prove that all the people eligible for membership in a credit union have something in common. So they can choose to provide services to different groups of people within one credit union.

Credit unions which are linked to a geographical area are limited to a common bond of 2 million potential members

What this means for employers

A credit union which is already providing services to a geographical area, workplace or members of a particular association can choose to provide services to all employees of a particular company, even if staff are spread around the country. 

This means that an employer can ensure that its entire staff  have the benefit of credit union membership and that this can happen in one easy payroll deduction transaction to the credit union. 

Allowing credit unions to provide services to corporate bodies and community groups

Main points

Credit unions can choose to serve companies, social enterprises, community groups etc.  Only 10% of members of a credit union can be corporate members. 

Credit unions can also seek investment by offering deferred shares, which are transferable but not withdrawable and are only repayable in limited circumstances.  Deferred shares count towards the capital of a credit union.  . 

What this means for employers?

Social clubs and other staff groups can keep their money with the credit union, if the credit union's rules allow this.   

Employers which wish to make a contribution towards the credit union can become members and deposit some money.  Depositors in credit unions benefit from the knowledge that their money is being recycled in the local community, providing a source of affordable credit to other credit union members. 

Some credit unions may start doing business lending;  this could offer an alternative source of finance for start up and existing companies