Labour MPs Call for Expansion of Credit Unions to Boost Access to Affordable Credit

Thursday 22 January 2026

A group of Labour MPs has urged the Chancellor, Rachel Reeves, to support a significant expansion of the UK credit union sector to improve access to affordable credit and savings for millions of people on low incomes.

The call comes as the UK’s military credit unions mark their 10-year anniversary, celebrating a decade of providing service personnel and their families with ethical, affordable alternatives to high-cost lenders. The military credit union movement is supported by Queen Camilla and includes Serve and Protect Credit Union, First Defence Finance (part of Plane Saver Credit Union) and Forces Finance (part of London Mutual Credit Union).

In a letter to the Chancellor, seen by the Guardian, MPs from across Parliament – including several select committee chairs – urged the Government to strengthen the Financial Inclusion Bill currently progressing through Parliament. Proposals include placing a duty on housing associations to actively promote credit union membership to their tenants, and extending access to the Government’s Help to Save scheme so it can be offered through credit unions.

The MPs called for renewed cross-government action to enable credit unions to play a greater role in community investment, affordable lending and long-term financial resilience.

Gareth Thomas MP, one of the signatories to the letter, highlighted the scale of military credit unions in the United States as a model for future growth in the UK.

Signatories of the letter include the defence committee chair, Tan Dhesi, the business and trade committee chair, Liam Byrne, and the justice committee chair, Andy Slaughter. Other MPs who have signed the letter include the backbench Labour MPs Stella Creasy, Kate Osborne, Matt Western and Nadia Whittome.

ABCUL Chief Executive, Matt Bland said: ““ABCUL welcomes this important letter to the Chancellor, calling on Government to build on the fantastic commitments set out in HM Treasury’s Financial Inclusion Strategy and to go even further to support a doubling of the credit union sector’s reach.

“Credit unions already play a vital role in providing fair, affordable financial services to communities across the UK. With the right policy support, the sector has the potential to reach millions more people – particularly those who continue to face barriers to mainstream financial services.

“We are grateful to Gareth Thomas MP for his continued energy and leadership in championing an expanded and more impactful credit union sector, and we look forward to working with Government and parliamentarians to turn this ambition into reality.”