Minister pledges credit union support

The Department of Work and Pensions minister said that there were arguments for further funding of credit unions, which can help people get out of the “nightmare spiral” of debt.

“£100 million should reduce the nightmare spiral of debt that those interest rates cause for so many excluded people,” said Mr Plaskitt.

Credit unions are cooperative unions which help people who may not be able to obtain a loan from conventional methods.

This can help many keep out of debt or stay away from loan sharks, but Mr Plaskitt said that there was more that the government could do to help the financially excluded.

“I am absolutely convinced that we can do more than is currently provided. We need to apply a good deal of imagination and innovation to working out the best way of achieving our aspiration of seeing far fewer people excluded and far more included in financial opportunity in its most basic forms,” added Mr Plaskitt.