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The Government Is Investing Millions in Credit Unions. Are Your Employees Benefiting?

  • May 12
  • 4 min read

This is not just a feel-good campaign. It is national policy in action

This week (11th to 17th May) is Stop Loan Sharks Week. The England Illegal Money Lending Team is out raising awareness of illegal lending across the country. And credit unions like CLEVR Money are right at the heart of the alternative they are pointing people towards.


But here is what is worth knowing beyond the campaign: the government has been quietly building something significant behind the scenes. And if you are an employer in Lancashire, you need to know about it.


What has the government actually done?

In November 2025, the government published its Financial Inclusion Strategy. As part of it, Fair4All Finance was handed £30 million — funded through dormant assets — specifically to transform and grow the credit union sector across England.


That is not a small gesture. That is a structural investment designed to double the number of people saving and borrowing with a credit union by 2035.


Then in March 2026, further reforms followed. The government raised the membership cap for locality-based credit unions from 3 million to 10 million potential members — meaning credit unions like CLEVR Money can serve far more people across Lancashire and beyond. Students can now join. Retirees can stay as full members. Families no longer need to share a household to qualify.


These are not tweaks. They are the government saying, clearly: credit unions are part of the answer to financial exclusion in this country.


The FCA and the Prudential Regulation Authority are both conducting a regulatory review to help credit unions offer even more services to members. The Guardian said it plainly: stronger credit unions keep loan sharks out.


Why does this matter on the ground? Because legislation does not pay anyone's bills. Awareness does. Accessibility does. And that is where employers come in.

Across Lancashire, over 550,000 people are currently locked out of fair banking. That means more than half a million of our neighbours — potentially including people on your payroll — may feel their only option when something goes wrong is a payday lender, a high-cost credit card, or worse, an illegal lender.


A broken boiler. An unexpected bill. A car repair that cannot wait. These are not extravagant situations. They are ordinary life. But without a savings buffer, ordinary life becomes a financial emergency fast.


So what can you do about it?


CLEVR Money is a not-for-profit credit union serving communities across it's common bond areas within Lancashire. We are regulated by the FCA and the PRA, and savings are FSCS-protected up to £120,000.


A payroll partnership with us means your employees can save directly from their salary — automatically, in small amounts, from day one of membership. They do not need a large lump sum. They do not need a perfect credit score to get started. They just need to join and start saving — paying themselves first before the bills.


That money is theirs. It sits in their own account with 24/7 access through our app. It builds quietly every month. And when something unexpected happens — because it always does — they have something to reach for that does not come with extortionate interest or intimidation.



What does "saving a little" actually look like?

Think of it this way. If your employee can afford to repay £100 a month on a loan, they can set aside £100 a month into savings. Same amount. Same discipline. But instead of paying it back to a lender plus interest, it stays with them and pay themselves the interest.


Over six months, that is £600 sitting in their account. Accessible, theirs, earning a dividend when the credit union have excess by end of financial year. That is the difference between a crisis and a cash buffer.


And for employees who do need to borrow? That's CLEVR Deduct. We charge a maximum of 3% interest per month — that is 42.6% APR — with no admin fees, no early repayment charges, and no penalty for joining. Compare that to a payday loan at anywhere between 60% and over 1,000% APR.


What does a payroll partnership actually involve?

Nothing complicated. We work with employers of all sizes across Lancashire. The setup is straightforward — we handle the member onboarding, the administration, and the ongoing account management. Your payroll team simply processes the deduction alongside existing salary payments.


There is no cost to your business. No liability. No risk.

What there is — for your employees — is a safety net. Built by them, held by a regulated community institution, and there the moment they need it.


The government has done its part. Now what?

The investment is in place. The regulations are being reformed. The FCA is on board. Local councils across our region — from Blackpool to Preston to Lancaster to Southport, our common bond — are actively pushing residents towards credit unions as their first line of defence against illegal lending and high-cost credit.


The infrastructure is being built. But it only works when employers bring it into the workplace.

Stop Loan Sharks Week is a good moment to share a post. It is a better moment to take one practical step that makes a real difference to the people who show up for your business every day.


If you have never heard of credit unions before, you better read Credit Unions for Dummies.

Talk to us. Let's make CLEVR Money part of your employee benefits.

To find out more about a payroll partnership with CLEVR Money, visit clevr.money/partners


Worried about illegal money lending? Anyone can contact the England Illegal Money Lending Team confidentially on 0300 555 2222 or visit stoploansharks.co.uk


References:


8. Fair4All Finance — Credit Union Transformation vision https://fair4allfinance.org.uk/our-vision-for-credit-union-transformation/

11. House of Commons Library — Credit Unions briefing https://commonslibrary.parliament.uk/research-briefings/cbp-10306/


 
 
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