Last year, the Government committed to launching a pilot a new Prize-Linked savings scheme for credit unions, to help people increase their financial resilience while boosting awareness and membership of credit unions.
Under the scheme individuals who save will be entered into a draw to win cash prizes. Following a competitive application process, the Economic Secretary to the Treasury, John Glen MP, announced in Parliament that 15 ABCUL credit unions across Great Britain would pilot the scheme.
Commenting on the announcement, ABCUL CEO, Robert Kelly said: “The pilot Prize-Linked Savings scheme is an initiative ABCUL has worked closely with HM Treasury on over the last number of months and I was thrilled to see 15 ABCUL members selected for the scheme. Our sector is all about encouraging people to save regularly with their local credit union.
“As a movement we continue to thrive and grow – statistics published by the Bank of England stated that between England, Scotland and Wales credit unions serve over 1.3 million people with savings of over £1.3 billion. This demonstrates how credit unions up and down the country are helping members afford their daily lives as well as promoting a financial wellbeing agenda.”
Discussed last week in Parliament by MPs was the contribution of Co-ops and Mutuals to the UK economy, to mark Co-op Fortnight. This included a call for a more favourable financial and regulatory climate for credit unions and start-ups.
In response to the debate, John Glen said Government is “committed to ensuring that capital requirements are implemented proportionately in order to support smaller lenders.”
“I was pleased that the Economic Secretary to the Treasury committed his support to credit unions by raising awareness of our sectors challenges around capital requirements,” said Robert Kelly and added: “As we strive for greater sustainability and a more robust approach to delivering financial inclusion our current environments needs to evolve and keep pace with innovation.
“Capital investment and a robust approach to delivering the right kind of legislative reform will increase our growth and will allow us to offer a variety of services that can compete within the domain of modern financial services.”
The 15 credit unions participating in the pilot Prize-Linked savings scheme are:
- 1st Alliance (Ayrshire) Credit Union
- Bradford District Credit Union
- Central Liverpool Credit Union
- Clockwise Credit Union
- East Sussex Credit Union
- Lewisham Plus Credit Union
- London Capital Credit Union
- Merthyr Tydfil Borough Credit Union
- Nottingham Credit Union
- Riverside Credit Union
- South Manchester Credit Union
- Westcountry Savings and Loans
- Commsave Credit Union
- Plane Saver Credit Union
- Police Credit Union