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20-09-2006
Citizens Advice Bureaux and credit unions are joining forces to bring more face-to-face money advice and affordable financial services for people on low incomes to some of the most deprived parts of the country, thanks to new funding from Barclays.
The move was announced by Citizens Advice Director of Policy Teresa Perchard in a speech today at a conference organised by the Association of British Credit Unions Ltd (ABCUL) at Barclays headquarters in Canary Wharf, London.
She said:
"Working closely with ABCUL and Barclays in this way is an exciting opportunity to reach people in real need who would not normally seek mainstream debt advice. They will be able to combine the benefits of free, impartial and expert money advice with the budgeting, bill payment and other services offered through credit unions to get their debt under control.”
She explained how ABCUL and Citizens Advice working together could help improve incomes and spending power for people, help them get their debts under control, ensure they do not miss out on benefits, tax credits or grants to which they are entitled, and help people get access to borrowing at lower rates of interest, as well as to savings and other banking services, bringing down the costs of these services.
A new post of Partnership Development Manager, funded by Barclays, has been created to build on and develop working relationships between Citizens Advice Bureaux and credit unions and to encourage joint working. A number of bureaux and credit unions already work closely or have some joint services. Citizens Advice and ABCUL are also each receiving investment from the Government’s Financial Inclusion Fund to increase the supply of free, independent money advice and affordable loans.
The two organisations also plan to work together on financial education, giving people on low incomes the skills, understanding and confidence to manage their money and make sound finacial decisions.
One in 12 households in the UK do not have a bank account and so have to pay more for access to cash and credit, and may not be able to access some goods and services such as mobile phones at all. People without a bank account may also find it more difficult to move off benefits into work, as most employers insist on paying earnings direct into a bank account.
ABCUL CEO Mark Lyonette said:
"We are delighted to be able to work with Citizens Advice on this project, thanks to the funding from Barclays. As the leading providers of face-to-face debt advice, Citizens Advice are ideally placed to supply the expertise people with debt problems need. By linking this provision with credit unions already providing affordable credit and easy savings schemes, people will have a range of options they can use to help them get their finances under control.”
Peter Kelly, Head of Financial Inclusion at Barclays said:
"No one organisation alone can tackle financial exclusion and it makes perfect sense that Citizens Advice and ABCUL should seek to work together in such a creative way. Citizens Advice Bureax and credit unions provide a vital service in our local communities and I have tremendous admiration for the invaluable support they provide for vulnerable consumers. I believe that we must all use our respective strengths to tackle financial exclusion and we are delighted to support this innovative partnership.”
Other speakers at the ABCUL conference, entitled "Including the Excluded: Quality Credit Unions at Work", included Chair of the Financial Inclusion Taskforce Brian Pomeroy and speakers from credit unions and a Citizens Advice Bureau which are already making a difference in their communities. Over 130 representatives from a range of organisations committed to tackling financial exclusion attended the conference.
About ABCUL
ABCUL is the main trade association for credit unions in England, Scotland and Wales. At the end of September 2005, ABCUL's 397 credit unions were managing over £380 million of members' savings on behalf of over 400,000 people, and had over £350 million out on loan. ABCUL is the country’s largest development, information and training network for new credit unions. It is a democratic, not-for-profit organisation and is improving day-to-day operations, legislation and regulation for all credit unions.
For more information on credit unions, please visit  www.abcul.coop
Notes to editors on Citizens Advice
- The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales; www.citizensadvice.org.uk
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
- Advice and information www.adviceguide.org.uk
- Volunteer hotline 08451 264264 (local rate)
- Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
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