Common Bond Reforms Set to Open Credit Unions to Millions More People Across Great Britain

Wednesday 18 March 2026

New reforms will let credit unions reach millions more people, expanding access to low-cost borrowing and secure savings for households. More people will benefit from affordable loans and savings as the government changes the rules so more people can join credit unions, helping households with the cost of living.

Delivering on its manifesto pledge to grow the mutuals sector, the government is today (18 March) setting out reforms to the rules on who can join credit unions in Great Britain.

By making it easier for credit unions to serve more people in their communities, the changes will support families, workers, students and retirees to access fairer financial products and build financial resilience.

Enabling credit unions to expand and broaden their membership will help ensure that more people can access fair, lower-cost alternatives to high-cost credit. This will strengthen the provision of responsible financial services and support households with the cost of living.

Economic Secretary to the Treasury, Lucy Rigby said: “These reforms will help more people get access to affordable credit and a safe place to save, so families have a real alternative to high-cost credit.

“We’re delivering on our manifesto pledge to grow the mutual sector by backing credit unions to expand and serve more communities. It’s another step in making financial services more accessible and supporting people to build financial resilience.”

The reforms will include:

• Bigger credit unions, serving more people: government will raise the cap on locality-based credit unions from three million to 10 million potential members, making it easier for them to grow and merge.
• Students included: Students will be able to join locality-based credit unions, alongside people who live or work in the area.
• Modern rules for modern families and working lives: Credit unions will be able to serve more relatives and household members, and members will be able to stay with (or join) their credit union after retirement as full members.

These reforms follow the Call for Evidence on credit unions’ common bond rules launched after the Chancellor’s first Mansion House speech.

This also builds on the government’s wider work to improve financial inclusion and resilience across the UK. As part of the Financial Inclusion Strategy, the government is also working closely with the financial services sector and consumer groups to bring forward interventions to make it easier for people to access a bank account, support people to build savings and improve financial education.

Matt Bland, Chief Executive of ABCUL said: “This announcement marks an important milestone in the government’s recognition of the vital role credit unions play in strengthening financial resilience and improving financial inclusion across Great Britain. Reforms to the common bond will enable credit unions to expand their reach, serve more communities and work together more effectively to deliver sustainable growth.

“As the government’s Financial Inclusion Strategy moves into delivery, it is encouraging to see credit unions recognised as a central part of improving access to fair and affordable financial services.”

The Call for Evidence summary here.