Credit union payroll deduction schemes
12 February 2016
Scotland’s First Minister urges employers across Scotland to sign up to credit union payroll deduction schemes, which can be used by credit unions to help get employees saving each month and take control of their finances.
The Scottish Government’s Credit Union Working Group report – Scotland’s Credit Unions: Investing in Our Future – sets out measures to help increase the use of credit unions in Scotland, and encourage more people to save and borrow responsibly.
According to the report all employers should offer payroll deduction schemes to allow employees to pay into credit unions. The report was launched by Business Minister Fergus Ewing at the Edinburgh headquarters of Lothian Buses, which already has 36 per cent of its employees signed up to a credit union through a payroll deduction scheme.
First Minister Nicola Sturgeon has also written a letter to employers across Scotland urging them to sign up to credit union payroll deduction schemes, which can be used by credit unions to help get employers on board.
There are currently more than 100 credit unions in Scotland, with a combined membership of more than 375,000. Six per cent of the population are enrolled in a credit union, compared to only 1.3 per cent in England, and 2 per cent in Wales.
The report also highlights the need to improve financial education for young people, including looking at partnering with schools to promote junior saver schemes being run by credit unions, and teaching aspects of numeracy in a real life context.
Read more from The Scottish Government.
The CIPP fully supports credit unions. Payroll can help by offering a credit union facility in the workplace. Payroll service providers can agree to administer credit union on behalf of customers; just like a payroll giving scheme. Visit the CIPP website for further details, including a short webcast and FAQs from payroll professionals.