MPs Discuss Financial Services & Markets Bill in Parliament

Friday 26 January 2024

This week, in the House of Commons, MP’s gathered to discuss the proposed Financial Services and Markets Bill, which will enhance the competitiveness of the UK financial services sector, and includes draft legislation to reform the Credit Unions Act 1979.

Throughout the debate, there was calls by MPs from across the country, in favour of the bill and urging Government to provide more support to the credit union sector.

Economic Secretary to the Treasury, Richard Fuller said: “As the country faces cost of living pressures, we must ensure that the door to affordable credit is open to all. The credit union sector plays a crucial role in this respect by delivering for its members and providing an alternative to high-cost credit.”

Membership of credit unions continues to rise amid a growing hunt for affordable credit products as the cost of borrowing rises sharply and the cost-of-living crisis worsens.

The latest data from the Bank of England for the first quarter of 2022 finds that 1.93 million people in the UK are now members of a Credit Union, an increase of more than 22,000 compared to the same period last year.

Damian Hinds MP referred to the growth of credit unions. In Northern Ireland, credit unions have been an incredible success. “We have seen development in the sector, but I would like to see a lot more,” Damian said.  “We have a great example in Northern Ireland—and indeed in the Republic of Ireland—of what a much more developed credit union sector can look like, and I would like to see that in mainland Britain. The proposals in the Bill will continue that development, amending the Credit Unions Act 1979 to allow for conditional sale and hire purchasing agreements to be undertaken by credit unions, along with the marketing of insurance services.

Andrea Leadsom MP said: “I am a big fan—always have been. What I love about them is that they teach people to save before they borrow. Like many co-operatives, credit unions have been great at reaching out to schools and teaching young people about the importance of saving and the fact that money does not grow on trees, so they get into the habit of saving their pocket money before they go out and start borrowing money for anything”

The full debate is available to read here.