Church’s debt-counselling service to go nationwide

The Church of England is to expand its money and debt support network nationwide, after successful pilot schemes are on target to save £2 million by helping people access affordable credit, writes Rose Gamble.

A pilot scheme based in churches in London, Southwark and Liverpool dioceses will be rolled out in dioceses in the rest of the country under plans put forward by the Just Finance Network, formerly the Church Credit Champions Network.

The network will have more than 260 “credit champions”, volunteers in local churches trained within the pilot scheme, to help people with budgeting skills and give financial advice.

More than 300 churches are involved in the scheme, encouraging people to sign up to credit unions, setting up credit union branches in church buildings and encouraging local employers to set up payroll saving schemes.

The programme is on target to bring in more than 3,000 credit union members by the end of the year. The pilot projects alone are predicted to have saved more than £2 million by helping people access affordable credit rather than high-cost payday lenders.

At the end of 2015 churches in Hackney (an original pilot area) came together, pledging to sign up 500 new members for London Community Credit Union, that offers affordable credit, in the next year. “Debt is a huge problem in Hackney, and destroys people’s lives,” said the Right Revd Rob Wickham, Bishop of Edmonton.

“Every day I walk past payday lenders who are making profits out of the misfortune of many of the poorest in society. That is why I, and many churches across Hackney, are working closely with the London Community Credit Union. Working together is a mark of a healthy community.”

The planned national expansion to the scheme is part of the work started by the Archbishop of Canterbury’s Task Group on responsible credit and saving.

The Archbishop of Canterbury launched an appeal, the Mustard Seed Appeal, on 6 June to raise funds for the planned expansion.