Contribution
My hon. Friend is absolutely right. The 34% growth of the credit union in Northern Ireland indicates its success. She is correct that there is certainly more it could do.
Total assets have passed £1.9 billion, having increased by 1.6% in the third quarter of 2022. Lending is also strong, with the loan book increasing by 8.3% year on year. Membership of credit unions in Northern Irelands stands at 571,000. To put that in context, Northern Ireland’s population is 1.96 million. That is a success story. It is lovely to tell everyone about what we are doing in Northern Ireland, and the hon. Member for Cumbernauld and Kirkintilloch was generous in her comments and acknowledged the good stuff we do.
The figures represent a 30% increase over the past 10 years. With the rise in membership comes the need to ensure that the institution is financially safe and sound, which is always important. I am thankful for the credit unions in my constituency; I can think of three straight away. The one in Kircubbin, which took over the premises of the Northern bank, or Danske bank, is an offshoot of the credit union in Portaferry, which I have supported the whole way through. There is also an active credit union in Newtownards that provides a wonderful service to get people on the road to financial stability. That is what credit unions do: they help people to save and ensure that they borrow and spend their money wisely.
There are over 2,200 credit unions providing ethical financial services to more than 1.5 million people, holding £2.71 billion in assets, £2.33 billion in savings and £1.83 billion in lending. Their differences mean that they can lend responsibly with good rates to those who are classified as excluded communities, with 31% of the community development credit union pathfinder members being “cash-strapped families”, and 21% falling into the “hard-up” or “challenging circumstances” categories. Credit unions are often the only fair option for such individuals and it is really good to have them on board.
Some 56% of credit unions offer payroll savings, and “save as you borrow” schemes turn 67% of previous non-savers into regular savers. Prize-linked savings also incentivise saving behaviour. I understand that in this day and age it is always that wee bit harder to save money. My mum and dad instilled in me a saving culture at an early age, and I remember saving from a very early age. Not everybody can buy their house today, as they perhaps would have whenever I was younger and houses were much cheaper. Credit unions like Serve and Protect offer dividends of 3.5% to 4.5%, returning £3 million to members, while for every £1 invested, the Clockwise credit union generates £11 to £19 in social value. Credit unions reduce financial leakage and build community wealth. I am sold on credit unions. I think they are great and I hope my speech has illustrated that. I think everybody else will say the same thing.
I will conclude, as I am conscious that others want to speak and that time will be limited. I am a strong advocate for credit unions simply because they work. Let us support and encourage them. As my hon. Friend the Member for Upper Bann (Carla Lockhart) said, let us try to do more so that we can bring them along. I encourage reasonable regulation that allows the freedom to spend locally and not to be drawn into more centralised investment—if someone borrows from a credit union, they are more likely to spend their money in the local area of their credit union, and more likely to borrow or buy from the area where they live—and I know that the Government, and the Minister in particular, would like to advocate for and support that.
I wish my local credit unions every success as they continue to help people to learn financial principles and responsibilities while sowing deeply into the local economy. That can only be a good thing, so it is a pleasure to speak today about credit unions. I could wax lyrical until about 10.28 am, but you would not let me, Mr Twigg—others will do that for their own constituencies.