EDINBURGH, Scotland–Scotland’s government is recommending that all employers offer payroll deduction to allow employees to pay into credit unions.
The government’s Credit Union Working Group issued a report – Scotland’s Credit Unions: Investing in Our Future –that sets out measures to help increase the use of credit unions in Scotland, and encourage more people to save and borrow responsibly, including payroll deduction programs for long-term saving.
The report was launched by Business Minister Fergus Ewing at the Edinburgh headquarters of Lothian Buses, which already has 36% of its employees signed up to a credit union through its payroll deduction program.
First Minister Nicola Sturgeon has also written a letter to employers across Scotland urging them to sign up to credit union payroll deduction plans, which can be used by credit unions to help get employers on board.
There are currently more than 100 credit unions in Scotland, with a combined membership of more than 375,000. Six per cent of the population are enrolled in a credit union.
The report also highlights the need to improve financial education for young people, including looking at partnering with schools to promote junior savings programs being run by credit unions.
Capital Credit Union and CEO Marlene Shiels were part of the working group.