A Scottish Labour government would expand support for credit unions and give every first year high school pupil a £20 deposit savings account with a local credit union in a bid to reduce the influence of pay day lenders in Scotland, within a generation.
The Scottish Labour leader will outline his plans at a visit to a credit union in Liverpool today (Tuesday).
Mr Leonard will highlight the important educational role credit unions can play in responsible lending and will say that too many families on low incomes are still turning to high cost credit to pay for everyday household costs and increasingly clients are in debt because they are falling behind on essential bills.
In addition to expanding support for credit unions in Scotland, Scottish Labour would take action on the personal debt crisis by:
- Tackling the cost of living by fixing our housing markets with rent reforms and building more homes for social rent
- Putting more money in working class families’ pockets by increasing child benefit by £260 per year
- Driving up wages with an industrial strategy to deliver better paid jobs
- Taking back control of public transport to ensure fairer ticket prices
A UK Labour government would ensure a cap on credit card interest payments and deliver fairer energy prices by taking the energy companies back into public ownership.
Scottish Labour leader Richard Leonard said:
“Scotland’s broken economy doesn’t work for working people, with too many families having to turn to high cost credit to pay essential bills. That cannot go on.
Under Labour, the days of predatory companies profiting from the squeezed wages of working people will end. Labour will take real action on the cost of living to ensure more money in the pockets of working people.
But I also want to see generational change in attitudes towards how people access credit if they need it. That’s why a Scottish Labour government would expand support for credit unions and establish a credit union account for every first year pupil in Scotland – we’ll put £20 in it too.
Credit unions can play a vital role in personal financial education and on the importance of an ethical economy”
This will increase awareness of credit unions among working class families and ensure that generations of young people to come have access to low cost credit.”
5 thoughts on “Leonard outlines steps to solve Scotland’s personal debt crisis”
Scottish (sic) Labour will promise us the Moon on a stick if they think it will get them back in power. History has taught us not to put too much faith in what they promise before they are elected though. Their 1999 and 2003 manifestos were barely referenced after they took power never mind acted upon.
Are you suggesting that giving every child a £20 starter for a credit union account is a) financially not viable or b) Not a good idea for the children? If so, tell us why. If not. I don’t understand your comment other than your usual anti-labour invective.
What’s not to understand? Scottish (sic) Labour say a lot when they don’t have the power to implement their “policies”. Then, when they have the power, they quietly forget all the promises. Its not rocket science.
Its not a good idea to make promises you don’t intend to deliver. Even worse when they are viable and affordable.
Where are you going to find the credibility to convince anybody of actual intent to deliver progressive policies in Scotland or England when you refuse to do so in Wales?
Why arent the children in Wales enjoying a £20 starter credit union account?
Helping the bankers fleece the unwary now that’s the Labour party of today.
Offering to temporarily freeze utility bill rises instead of committing to renationalising the energy industry. That’s the labour party of today.
Promising to build the homes they never built when they had the power and authority to do so. That’s the Labour party of today.
Meaningless soundbytes and generic pledges which they can and will be interpreted at will by a Labour party in power. That’s the Labour party of today.
I was wrong to classify them as an organised crime syndicate. Accusing them of being organised was going too far.
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