Credit unions welcome support for money guidance service

ABCUL – the Association of British Credit Unions – has welcomed Government support for financial planning advice announced by Yvette Cooper, Chief Secretary to the Treasury.

Mark Lyonette, Chief Executive of ABCUL, applauded the initiative which would help people to manage their money better.

“We are pleased that the Government has announced a £12 million package following the recommendations of the Thoresen Report into the provision of financial guidance in the UK. As the credit crunch bites and more people are turned down for credit they are likely to need more guidance to plan their finances. Credit unions have a long history of encouraging people to save and spend wisely, and I am sure this initiative will help further.”

According to Mark Lyonette, people often need money advice at key stages of their lives, such as at times of marriage, divorce, moving home, retiring or moving to a new job.

“Successful financial budgeting is not easy at a time of change, especially if it is unexpected. While marriage and buying a home might be planned, problems arising from the credit crunch might not be, and all of us engaged in providing advice should welcome the opportunity to deliver high quality financial bugeting and planning advice so that our members and customers are in the best position possible.”

Thoresen found that by 2060, UK consumers could be up to £15 billion better off if people have access to high-quality, personalised and impartial guidance on financial matters. This is not available to everyone at present, as the commercial financial advice market finds it difficult to serve the needs of many ordinary consumers, particularly those on average or lower incomes.