Government measures to provide affordable credit

Commenting on the Government's announced measures to provide affordable credit, Tim Moss, head of loans at moneysupermarket.com, said: "Cheap debt is a thing of the past, with many Brits finding it increasingly difficult to be accepted for any form of credit. Therefore, the Government's suggestion that it may make it easier for families to access credit via credit unions from next year is a step in the right direction.

"Reasonably-priced credit such as that offered by credit unions could be a sensible way to prevent low income families defaulting on household bills. However credit unions have a history of financial instability, with the FSCS regularly having to step in when they have failed. Credit unions will therefore need to demonstrate their own financial security."