Credit Unions Gather in House of Commons for Financial Inclusion Event

Thursday 25 January 2024

In an event hosted in House of Commons this week, credit unions, MPs, Government officials and speakers from Fair4All Finance gathered to learn about the new Dormant Assets Act 2022.

The new Dormant Assets Act 2022 is expanding the Dormant Assets Scheme and will unlock new funding for good causes. This provides a unique opportunity to do more to tackle financial exclusion – supporting wellbeing, growth and prosperity across the country.

Speaking to attendees at the event was CEO of South Manchester Credit Union (SMCU), Sheenagh Young who shared the success of the credit union’s No Interest Loan Scheme.  SMCU was chosen by Fair4AllFinance to be the organisation in England to run the proof of concept for NILS which aims to test initial learnings ahead of a full pilot to be launched later this year.

“ It was good to have the opportunity to speak at the recent Fair4AllFinance Financial Inclusion event at the House of Commons,” said Sheenagh.

The scheme is the first of its kind in the UK and has drawn inspiration from research conducted by London Economics. NILS aims to benefit individuals and society by providing a safe line of affordable credit to people on a low income to clear financial hurdles such as rent deposit, up front nursery fees and household equipment. Removing the burden of interest can make a difference to the ability to repay.

Sheenagh added: “The early findings from the trial of the NILS show that the positive impact for individual recipients can kickstart a savings habit with a credit union and access to the long term benefits of membership. The scheme is also stimulating fresh conversations with stakeholders and partners about the role of our sector in the personal loan market place and the potential for us to grow our reach ”