In a bid to support financial inclusion, the sum committed to the church is intended to provide local resources through churches to communities to aid increased take up of credit and savings accounts.
Delivered, initially, through a three-year pilot programme involving some 180 churches in London and Liverpool, the Church aspires to train at least 300 “Credit Champions” and generate at least 3,000 additional members of Credit Unions.
It is hoped the programme will be rolled out nationally in due course.
Sir Hector Sants, chair of the Archbishop of Canterbury’s Task Group on Credit Unions (pictured) said: “A growing number of people are forced to rely on short-term loans at very high interest rates simply to make ends meet. This sets them on a spiral of crippling debt. The appalling statistic is that one million families take out payday loans every month. Growth, and indeed, public awareness of Credit Unions has been very slow.
“This is set to change. I applaud this additional investment by Lloyds Banking Group and its ready support of the Church Credit Champions Network and further adding its weight to the Credit Union movement.”
Chair of tomorrow’s House of Lords event, Lord Kennedy of Southwark said building a vibrant credit union sector in the UK is incumbent upon us all.
Lloyds is funding and offering mentoring and volunteers for the scheme from its 90,000 staff.
The Group recently announced its Helping Britain Prosper Plan which made seven separate and significant public commitments to address some of the big issues facing Britain today.
A Lloyds spokesperson denied the service strayed into paid-for financial advice territory.
“We believe the people who turn to this type of service are unlikely to be those who generally avail themselves of paid-for financial advice. If they were to be referred to a CU or other provider which, in the case of a mortgage for instance, required an advised sale then it would be up to the institution to provide that,” she said.
“So we’re talking about two different things essentially – there’s no conflict or threat of sub standard advice.”
Archbishop of Canterbury Justin Welby approached Sants (pictured) in January to head up a ‘ten-year plan’ to drive payday lenders out of business and produce a ‘radical new theology of finance’.
The new scheme marks the latest chapter in the Church’s ongoing crusade against the payday loan sector with official statements from prominent clergyman last year identifying their intention to have market leader Wonga closed down.
