Ethos Public Relations Manchester

Credit union disappointment at Government decision to scrap Saving Gateway

by Ethos public relations

ABCUL - the Association of British Credit Unions – has expressed its disappointment at the decision announced by the Government in today’s Emergency Budget to scrap Saving Gateway.

Speaking on behalf of the sector, Mark Lyonette, Chief Executive of ABCUL, said: “Over 100 credit unions had already put in place plans so that they could start delivering the new savings product next month. They were looking forward to helping more low income consumers get the saving habit. It is disappointing that the Government should cancel this at the last minute.

“Credit unions will of course continue to work to encourage savings in their communities. They do this by providing easy ways to save and crucially by reducing the very high cost of credit for those on low incomes. This means people have more money in their pocket to start a savings habit. In the last four years credit unions have already helped nearly a quarter of a million people to save hundreds of pounds each in interest payments on small loans. We hope that the Government will continue to support credit unions in reducing the debt burden for low income consumers as a valuable way to encourage saving.”

Posted at 22^nd June 2010