Credit Union Poverty Lambeth

A Credit Union in Lambeth to help those on low incomes

In 2008 we agreed an award of £297,000 to the Lambeth Savings and Credit Union to support a banking inclusion project. This was in addition to a running cost grant of £270,000 we had made in the previous year.

The aim was to ensure a self-sustaining local Credit Union which provides

access to full banking services for people on low incomes
access to affordable loans
the education of those unfamiliar with financial and budgetary practices
a wider programme of financial literacy amongst low income groups

The grant fitted well with our interest in making a long-term and sustainable difference to Lambeth residents facing financial poverty.

For several reasons the local Credit Union ran into difficulties. During 2009 and early 2010 we coordinated discussions to find a solution and to ensure a continuing credit union provision for Lambeth. We are delighted to report that this was achieved as a result of our Foundation's funding and by an FSA-approved merger of the Lambeth CU with a neighbouring one, to create a new, enlarged body known as the London Mutual Credit Union.

This development accelerated provision of full banking services to credit union members in Lambeth. We are grateful to our partners - Southwark Credit Union and Lambeth Council.

News and links

LMCU
ABCUL (national body for Credit Unions)
Financial Services Authority leaflet
about credit unions

...this award is unique in
the history of our Foundation, in size and strategic purpose...