Agenda item

The Board received a presentation from Tracey Done and Gareth Heesom, Halton Credit Union, which:-

·         Highlighted that since it had been established in 2002, over 25,000 loans had been allocated with a total value of £11.7 m and members had deposited £7.8m in savings;

·         Explained that there were over 4,000 active adult members who had over £1.8m in savings and had £2.3m on loan, the majority of which was spent locally;

·         Detailed the financial year so far from October 12 to September 2013; £1.2 m had been allocated on loans, 700,000 withdrawals had been processed and £2m had been brought in in share deposits and loan repayments; and

·         Outlined what the future could hold; more members in financial hardship; an increase in the services that were offered and Halton Credit Union members would continue to be served.

The Board was advised that Halton Credit Union was a none profit organisation who encouraged saving and promoted money management.  Members could pay in weekly, two weekly or monthly and pay in as little as

50 p on a regular basis.  It was reported that the main office was based in Halton Lea and members could pay in cash, via payroll or from their child benefit etc.  Members were given a free life assurance (with terms and conditions) and if there was a bereavement, whatever they had was doubled.  It was also reported that there were no penalties for early repayment of loans and the highest interest rate was 26.8%.  The Credit Union also had junior savers and some schools were involved to teach young people money management at an early age. 

The Board was further advised that there was a loan scheme available from Co-op electricals, which was a much better option than other similar high street shops.  Delivery was free and within two days and the interest rates were much lower. 

The following comments arose from the presentation:-

·         Concern was raised that money lenders were operating in the Ditton Ward and that the situation would get worse with the introduction of Universal Credit.  It was reported that some individuals had limited budgetary skills and this would create a problem when they were paid their rents directly as they were not accustomed to handling large amounts of money.  The benefit cuts would also create difficulties as the allocated rent money could be used for other things and this could result in rent arrears and possibly the family becoming homeless;

·         It was noted that Halton Credit Union had 12 staff, but many of them were part time.  It was also noted that many volunteers had retired and had left as the pressure for the service had increased;

·         It was noted that Halton Housing Trust had invested in Halton Credit Union and had been supportive and had also paid for the marketing of the service;

·         It was agreed that details of Halton Credit Union be place in the In Touch magazine, Inside Halton and in HBC’s employees payslips.  It was also suggested that information could be placed on the Council’s website.  It was agreed that Halton Credit Union would contact HBC’s communications department to co-ordinate the advertising.;

·         It was noted that Santander had allocated £10,000 to the Credit Union which had enabled them to purchase equipment that enabled them to deliver a better service and deal with people more effectively;

·         It was noted that currently only two schools had engaged with Halton Credit Union.  However, it was also noted that the Credit Union did not currently have the capacity to engage with further schools because of the lack of resources; and

·         It was reported that the main office in Widnes was in Queens Avenue, which was not ideally located and the rent was high.  It was agreed that a letter be sent to the Chief Executive on behalf of the Board requesting that consideration be given to finding new cheaper premises for Halton Credit Union.  It was noted that they would need an office with equipment etc.  It was also agreed that information on the service be placed at Halton foodbanks.

RESOLVED: That

(1)       The presentation and comments raised be noted; and

(2)       Gareth Heesom and Tracey Done be thanked for their informative presentation; and

(3)       The Board congratulate Gareth Heesom and Tracey Done for the excellent work they had undertaken  to date.