The report “From Recession to Recovery: The importance of personal finances” has highlighted the vital role credit unions can play in supporting communities with their finances and the benefits that this can have for local authorities.
The report looks at how support for residents in managing their finances can greatly improve their financial position which in turn boosts their ability to meet their obligations to both the Council and others and reduces the strain on local authority services.
North Yorkshire Credit Union, which recently moved from serving only York to serve the whole of the rural county with support from the County Council, is cited in the report which is going to be sent to every councillor in England and Wales. Because of the Council’s support the credit union has been able to help many more people who may otherwise have fallen into arrears including one man who, thanks to a last minute loan from the credit union, was able to call off bailiffs who were ready to repossess his belongings having fallen into Council Tax arrears.
Mark Lyonette, ABCUL Chief Executive, said: “In the current economic environment and with public sector cuts on the horizon, this report is a welcome look at the benefits that targeted spending can have. Supporting a credit union to expand today can prevent thousands of people from falling deep into debt and being unable to pay their tax or rent to the council in future with all the dreadfully expensive court-hearings, evictions and repossessions that this can entail.”