Money saving expert Martin Lewis has joined London Mutual Credit Union following the launch of a new partnership giving all Palace of Westminster workers access to credit union services through payroll deduction.
The initiative was launched at a Parliamentary event hosted by the All-Party Parliamentary Group on Credit Unions, where Lewis spoke about the importance of ethical alternatives to high-cost lending.
Lewis, who became a member at the launch event, 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.”
Cross-party political support
The partnership received backing from senior parliamentarians, with Damian Hinds MP, Chair of the All-Party Parliamentary Group on Credit Unions, saying: “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, Vice Chair of the APPG on Credit Unions, added: “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.”
Industry significance
The Parliamentary agreement represents a significant endorsement for the credit union movement. 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 highlighted the broader implications: “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.”
The Parliamentary partnership allows staff to save or repay loans directly from wages, providing convenient access to ethical financial services within the Westminster workplace.
