RENFREWSHIRE, U.K.–The Renfrewshire Council has allocated £175,898 investment in local credit unions as part of a two-pronged drive to fight high-cost lenders and tackle poverty. The move will also mean the introduction of the first credit union funeral loan – available to all residents, not just credit union members.
“The spiralling cost of living, coupled with lower wages and welfare reform, have pushed more people towards high-cost credit. We are willing to be bold and innovative in our two-fold fight against payday lenders and poverty – and that’s why we want to invest this £175,989 sum into local credit unions,” Councillor Mike Holmes, Renfrewshire Council’s Depute Leader, told local media. “If we are to genuinely tackle high-cost loans and the negative impact they have on families, we must make sure an alternative is in place locally by providing access to dependable banking services and affordable credit. That’s why it’s crucial to invest in local credit unions.”
Holmes said the development of a loan for funeral expenses is important because of the “very real issue of funeral poverty that many families face.” To alleviate that issue, the Renfrewshire Wide Credit Union will use £13,100 to develop a new funeral loan product available to all residents.
The £175,989 is being allocated across four credit unions – Renfrewshire Wide, Gleniffer, White Cart and Johnstone – and local voluntary sector co-ordinator Engage Renfrewshire.
The £175,989 cash boost would bring the council’s total investment in local credit unions since 2014 up to more than £400,000.
