Agreements with the Parliamentary authorities mean that anyone working in the Palace of Westminster can now join London Mutual Credit Union and save or repay loans direct from their wages.
The initiative was launched at an event in Parliament hosted by the All-Party Parliamentary Group on Credit Unions and London Mutual Credit Union. Money saving expert Martin Lewis spoke at the launch and also became a member of the credit union.
Credit union partnerships are a cost effective way for employers to enhance the financial well being of employees and payroll deduction makes saving and borrowing easy and convenient. The Parliamentary authorities are the latest in a long list of employers to offer this benefit to their employees. Staff working for the police force, public transport employers, British Airways and the NHS are just some of the people who already enjoy the convenience of payroll deduction.
Martin Lewis said: “With the growth scourge of payday lending across the UK – credit unions are a viable, cheaper, non-profit local alternative and should be encouraged. Therefore today I hope to be excited at the launch event to see senior MPs and even Government Ministers giving the London Mutual their backing by joining up and making use of the deduction facility. It’ll be interesting to see who puts their money where their mouth is.
“This extra income for the credit union can then be lent back out to the community as affordable loans, stopping the need for many to resort to the use of high-cost credit and demonstrating the benefit to both sides of the financial equation of becoming a member.”
Damian Hinds MP, Chair of the All-Party Parliamentary Group on Credit Unions, said: “I am delighted to see London Mutual Credit Union extend its services to all of those working in and around Parliament. Partnering with employers and payroll deduction arrangements can have enormous benefits for credit union development while providing a valuable financial service to workers and employers.”
Lord Kennedy of Southwark, a Vice Chair of the APPG on Credit Unions, said: “In extending to Parliamentarians and Parliamentary staff, London Mutual will ensure that even more people can benefit from their excellent, affordable and ethical services both in Parliament and in the wider community. And I hope that in making personal use of London Mutual, many more MPs will be persuaded of the great value that credit unions generate for their members and society.”
Lucky Chandrasekera, London Mutual Credit Union chief executive, said: “It is fantastic to be launching our Parliamentary service today which is a goal we set ourselves some years ago. We hope by launching this service for Parliament that we can demonstrate the value of credit union membership on a daily basis to MPs and the wider Parliamentary staff. We have a range of competitive products and services for Parliament to take advantage of.”
ABCUL Chief Executive Mark Lyonette said: “The value of payroll deduction is not to be underestimated for all parties concerned. This high profile addition to employers offering this service is very welcome. The vast majority of large employers in the US – including the White House, Congress and Senate – offer this facility to their staff and I hope that many more will follow this example and talk to their local credit union about how they can help their employees access convenient financial services through payroll.”
Credit unions are financial co-operatives, owned by their members, which provide safe savings, affordable loans and a range of other financial services to over a million people in Britain.
London Mutual Credit Union is the largest community credit union in London. It serves over 20,000 members in the London Boroughs of Southwark, Lambeth, Westminster and Camden. Members have access to a range of savings and loan products, including the Credit Union Current Account and a cash ISA offering 3% AER.