A £38m contract aimed at modernising and growing the credit union industry has been awarded to the Association of British Credit Unions.
The Government contract was put out to tender by the Department for Work and Pensions.
A recent feasibility study showed that modernising the industry and helping it become financially self-sustainable would enable credit unions to help up to one million more people, giving them access to banking products, debt advice and affordable loans.
David Freud, minister for welfare reform, said: “Credit unions offer an alternative to vulnerable people who have few safe options to get cash when they need it most. They are the antidote to predatory loan sharks or high-interest lenders.
“We are pleased ABCUL will be carrying out our investment to modernise and make credit unions financially self-sufficient so they continue to help those in their communities who need it the most.”
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