7. What support the Church of England provides to local credit unions. (903472)

Churches and dioceses across the country have responded enthusiastically and creatively to the Archbishop of Canterbury’s call to support credit unions and community finance, often building on pre-existing initiatives and helping to build financial resilience in communities. The diocese of Gloucester has recently part-funded the appointment of a credit union development worker for Gloucestershire Credit Union and established collection points in local churches.

The diocese of Gloucester has shown real commitment to breathing new life into Gloucester Credit Union; I should declare an interest as a long-standing member. However, we need to do much more to reach effectively those who are most vulnerable to loan sharks. Can my right hon. Friend assure me that, while the Church of England builds and promotes its own new credit union, that will not distract from the important work it does in supporting existing local credit unions?

I absolutely give my hon. Friend that assurance. Every Member of this House would recognise the importance of credit unions at the local level, but that goes hand in hand with, and does not detract from, the Archbishop’s task group on responsible credit savings, which has sought to harness the Church’s national and grassroots resources in support of developing a stronger community of finance.

As chairman of the all-party group on credit unions, may I welcome my right hon. Friend’s last answer? I also welcome the leadership that the Archbishop of Canterbury has shown on the issue of problem credit. Does she welcome the launch of Fair For You, and will she comment on how the Church can support that community finance initiative in the rent-to-own sector that is taking on some of the challenges in that sector and showing that responsible, local community finance can compete?

I will certainly take that suggestion back to Church House. The Church has shown commitment to helping people manage their money and invest safely, and to teaching our children at the very earliest age—through its LifeSavers project, with assistance from the Treasury—how to ensure that they do not get into debt. All that is evidence, I think, that the Church will be supportive of my hon. Friend’s suggestion.