Welcome to Debt Matters. If you collect consumer debt in the UK, this story matters: more credit union lending and saving could mean fewer people falling into high-cost borrowing, but it could also change who gets paid first when budgets tighten.

What happened

Labour MPs have written to Chancellor Rachel Reeves urging a major expansion of UK credit unions to widen access to cheaper, community-based credit and better savings for people on low incomes.

They want changes to a financial inclusion bill, including:

* Requiring housing associations to promote credit union membership

* Allowing credit unions access to the government’s Help to Save scheme

They also call for a plan to double the size of the credit union sector.

Credit union membership grew by 9% between 2020 and 2025 to 1.5m+ ...