EDINBORO, Scotland–The Scottish government plans to increase its support for credit unions in the country.
The latest Programme for Government for 2018/2019 highlights that Scotland has a strong credit union sector, noting that over the last two years the government has funded credit unions to run projects with local schools, encouraging young people to budget and save.
“Last year £148,000 was provided to 11 credit unions and since the programme commenced, in 2016, 47 new savings schemes have been established in schools across the country, from Dumfries and Galloway to Morayshire,” reads the programme, according to Cooperative News.
Scotland’s government said it is seeking to continue to work with credit unions on providing affordable lending and savings and protect communities from “predatory lenders.” In November, the government plans to launch an awareness campaign to further strengthen the credit union movement, Cooperative News said.
“We know that accessing affordable credit is a concern generally across Scotland,” the programme adds. “That is why we are investing £1m in the Affordable Credit Fund, working with the Carnegie UK Trust to reduce the ‘poverty premium’ low-income households often have to pay.
‘Considerable Challenges’
“Care-experienced young people, in particular, can face considerable challenges to borrow money. We want to help. Over the next year, we will work with the Care Review to develop options which will help these young people increase access to financial services, including affordable credit.”
“We are pleased that the Scottish government continues to recognize the important role the credit union sector plays for many people in Scotland, particularly in relation to affordable credit,” Karen Hurst, Scottish Policy officer for the Association of British Credit Unions, told the Cooperative News. “We’ve been working closely with the Scottish government on developing the campaign, and are really excited to see it launch in November.”
£2 Billion Contribution
Cooperative News reported that social enterprises, some of which are co-operatives, contribute £2 billion to the Scottish economy each year and provides jobs for around 80,000 people.
The Scottish government also reported it will use the Year of Young People 2018 and its delivery of social enterprise activity in schools and early learning establishments across Scotland to raise awareness of social enterprise as a viable and rewarding career.