High Cost Credit Bill

Part of the debate – in the House of Commons at 10:16 am on 12 July 2013.

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Photo of Damian Hinds Damian Hinds Conservative, East Hampshire 10:16, 12 July 2013

If the hon. Gentleman will forgive me, I must say that he makes political rather than helpful points on this subject. I did not say that these people had the facility to save large amounts of money. As a director of a credit union, he will know that the whole credit union movement is based, initially, on helping people to save. Many credit unions will have a “save as you pay back” process, whereby even where someone borrows from them they will find that at the conclusion of that loan they have a small savings pot, which will stand them in better stead for the future. If we move more towards budgeting-type banking—the so-called jam jar bank accounts—there will be the facility for small amounts of money to go, through payroll deduction, into a savings account. That has exactly the same effect, but at a cheaper rate, in terms of smoothing out the ups and downs of cost that people incur through the year.

In conclusion, I wish to congratulate, again, the hon. Member for Sheffield Central, who has done a great service in bringing all these issues to the House. We have a new regime and we have a lot going on from the Government, so we have to see how that beds down, but I am sure that today’s debate will push that forward.