Cash boost for credit unions

Credit unions are encouraged to be innovative

Credit unions have been given a £250,000 boost by the Scottish Executive to help people on low incomes organise their finances.

Social Justice Minister Margaret Curran said unions would be invited to apply for a share of the cash as part of the executive's drive to make financial services more accessible.

Credit unions have traditionally offered services to people in the lower income bracket.

The move is part of a £1.5m scheme to provide "sustainable" savings and loans in Scotland's poorest communities.

Margaret Curran: "Providing a service"

Scotland is said to account for a large proportion of credit union members, with an estimated 130,822 people using them.

Ms Curran said: "The executive is working to help people help themselves out of poverty and our continuing support for the credit union movement is an integral part of this.

"This new fund will enable credit unions to consider innovative ways of improving their services.

"This could include using funds to extend services to remote or rural Scotland, recruiting volunteers or working in schools to promote the savings habit.

"I would encourage all Scotland's credit unions to apply for this funding which will help them operate as serious, credible financial institutions providing a service for the whole community."