MPs Rally Behind Credit Unions in Westminster Debate

Wednesday 16 July 2025

ABCUL has welcomed strong cross-party backing for the credit union movement during this week’s (Wednesday 16 July) Westminster Hall debate on “The Role and Future of Credit Unions.”

The debate highlighted the vital role credit unions play in tackling financial exclusion, offering fair and affordable credit, and supporting local communities during a time of economic pressure.

Reflecting on her long-standing personal connection to her local credit union, Katrina Murray MP praised credit unions for offering vital access to savings and affordable credit, particularly in working-class and rural areas, while highlighting the headwinds the sector faces in regulation and capacity to modernise.

Jim Shannon MP echoed Murray’s sentiments, wishing his local credit unions every success as they continue to help people to learn financial principles and responsibilities while sowing deeply into the local economy

Maureen Burke MP added her voice in support, describing the role of credit unions in her own constituency as “showing time and again how valuable they are” for families under pressure from rising living costs and for those who are excluded from other financial institutions. She urged Government to recognise their dual role – not only as financial service providers but also as community institutions embedded in the social fabric of their regions.

Chris Kane MP encouraged for public bodies to support credit unions not just by promoting them, but by banking with them. Chris added that local authority deposits, even modest ones, would help with the stability and capital that credit unions need to grow, and would send a powerful signal to the public that credit unions are valued, supported and used by institutions.

Irene Campbell MP expressed her enthusiasm to begin working with ABCUL on forming the new all-party parliamentary group on credit unions, which will meet for the first time in September. Irene stated that: “Credit unions can ensure that people can access a degree of financial freedom, allowing them greater control of their finances and a say in how the union is run. It is vital that we encourage membership and ensure that people are aware of this excellent local service.”

Mark Garnier MP, who has long advocated for financial inclusion, concluded by stating: “all the evidence suggests that credit unions are a potential growth engine for communities. By introducing a modern legal framework, progressive common bond reform and investment into service organisations, we can help this sector to continue to flourish.”

Several MPs acknowledged the work of ABCUL and credit unions across the country in strengthening the sector and championing legislative and regulatory reform.

Responding to the debate, The Parliamentary Secretary to the Treasury, Torsten Bell MP warmly acknowledged the importance of credit unions as vital community institutions that support financial inclusion across the country.

Bell outlined key Government actions already underway, including the Chancellor’s November 2024 Mansion House speech, which set out a package of measures aimed at supporting credit union growth. These include a call for evidence on reforming the common bond rules, a forthcoming report from the financial regulators on the mutuals landscape, and the establishment of an industry-led mutual and co-operative business council.

He emphasised the unique role credit unions play in helping people build emergency savings and access affordable credit, and detailed ongoing work to enhance payroll saving schemes.

Concluding, Bell reaffirmed the Government’s commitment to supporting credit unions as essential contributors to economic participation and community resilience and encouraged all stakeholders to engage with the ongoing consultations and assured continued Government support for the sector’s growth and sustainability.

ABCUL Chief Executive Matt Bland welcomed the debate and thanked MPs for their support: “I want to thank all those who took part in today’s important discussion. The debate reflects a growing consensus that credit unions are a powerful solution to financial exclusion and can play a much greater role in our financial system.

“With Government interest, cross-party support, and a sector ready to scale, the time is now for credit unions to seize this opportunity for growth through cooperation, innovation and legislative reform.”

ABCUL continues to work closely with policymakers and credit unions across the country to unlock the sector’s full potential and ensure communities have access to fair, inclusive, and sustainable financial services.

To read the full debate, please click here.