Brighton & Hove Council are investing £100, 000 over the next 2 years in the East Sussex Credit Union, (a local not for profit savings and loans co-operative), as part of the council’s new Financial Inclusion Strategy.
Credit Unions offer a chance to save and borrow ethically and a sensible option for those otherwise excluded from credit or bank accounts. In some cases a Credit Union can be a cheaper credit alternative to mainstream banks for everyone. Membership provides a fairer alternative to the exorbitant interest rates charged by the ‘instant cash’ pay day loan companies, and members automatically become share-holders, ensuring ethical growth with benefits being fed back into the local community.
Councillor Bill Randall, Chair of Housing has been a member of the Credit Union for over 14 years.
He said:
“Vulnerable people in Brighton & Hove are the hardest hit by welfare reforms and the signs of poverty are all around us. More and more people turning to pay day loan companies and loan sharks to survive, and the queues are lengthening at food banks across the city.”
“This substantial Investment will enable our local credit union to make a real difference to those who have been reduced to appalling debt by these unscrupulous money lenders in the past.”
£10,000 of the total amount from the council will be spent on improving technology to raise the profile of the East Sussex Credit Union and to make it more accessible so that members can now join and manage their account online.
To view the website, CLICK HERE: www.eastsussexcu.org.uk
Council Leader Jason Kitcat, who has pledged to be the first online customer, said:
“At a time when so many people are facing financial difficulties, our local credit union is a real lifeline. I’m really pleased that as part of our financial inclusion programme, we’ve helped them develop this online tool, making the East Sussex Credit Union as accessible as other lenders. Now more people will be able to save and borrow from them, and in turn, more support will be on offer to friends and neighbours in our communities.”
The council is undertaking a range of work to tackle the problem of financial exclusion including the commissioning of a community banking partnership.
You can find details on the council’s website.
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