Credit union account for every high school pupil in Glasgow
14 Jun 13
Glasgow City Council has announced it will deposit £10 in a credit union account for every new secondary school student in the city from this August.
The decision to help every young person have access to a credit union’s services was made following a study into the scale and impact of payday lending on the city’s residents.
City Treasurer Councillor Paul Rooney said: "I think we all suspected that the use of these loans would be relatively high in Glasgow, but the figures are startling. Glaswegians borrowed more than £57 million this way in the last year - and around 100,000 adults are using some sort of non standard credit.
“What we are doing with this project is giving every young Glaswegian that safe and secure relationship with a credit union that is responsible to its members and to its community. Straight away, they will start to learn about managing money and will have the opportunity to save. And if, years from now, they decide they need to borrow; they will also have access to a lender that knows them well and will help them - rather than simply see them as an opportunity to turn a profit."
Around 6,000 young people enter first year at one of Glasgow’s secondary schools every year, and the Council will make it easier for every one of them to open a credit union account with a £10 deposit.
ABCUL Scotland Policy and Relations Manager Frank McKillop said: “Glasgow is already the “credit union capital” of Britain, with the city’s 34 credit unions serving over 120,000 members – meaning more than a fifth of the population use a credit union.
“This innovation will over time ensure that every young person in Glasgow has a relationship with an ethical local financial services provider and a better understanding of money management, saving, budgeting and responsible, affordable borrowing.”