Payday lending drops after Welby intervention

A TASK group set up by the Archbishop of Canterbury to tackle payday lending has published its final report, finding evidence of a “sea change” in public and political thought on the issue, writes Rose Gamble.

Led by former financial regulator Sir Hector Sants, the task group was launched at the start of 2014 for a two-year term as part of a pledge by Archbishop Justin Welby to use the Church of England to build up credit unions as an alternative and cheaper source of finance than online lenders. Since its creation, payday lending has declined by 68 per cent and membership of credit unions has grown by 13 per cent.

“The Archbishop of Canterbury’s intervention has undoubtedly helped to galvanise a broader awareness of, and support for, credit unions from churches and wider society, and contributed to a sea change in public and political opinion around payday lending,” the report says.

It highlights the task group’s work in creating a credit union for church staff and a network of saving clubs in schools. A new charitable company is to be set up to continue the work of the group.