Announced on Wednesday, 18th March 2026
The government has announced the most significant reform to credit union membership rules since 2017, when it expanded to membership to 3 million people. This new legislation, raising the cap from three million to ten million potential members has the power to transform financial inclusion across the East of England.
Labour MP Lucy Rigby confirmed that locality‑based credit unions will soon be able to serve much larger populations. This long‑awaited change opens the door for millions more people to access ethical savings, affordable loans, and community‑focused financial support. And for our region, the impact could be profound. For areas like south Essex, where residents currently have no access to any credit union facilities, the impact could be especially meaningful. For years, the membership rules have limited who could join a credit union, leaving large parts of the East of England without the financial support they deserve.
At Eastern Savings & Loans Credit Union, we have always worked across our wide geographical area, Norfolk, Suffolk, Cambridgeshire, and North & Central Essex, providing friendly, approachable services both online and through our Money Helper-accredited in‑house telephone team. Our website and online Members Area ensure that members can access ethical financial services easily and inclusively, wherever they are.
We believe this reform has the potential to make a real difference not only to people in South Essex but across the entire region. As a financial cooperative that puts people before profit, we remain committed to keeping funds local, supporting community resilience, and offering fair, transparent, affordable loans that prioritise our members’ financial wellbeing.
We hope the increase from three million to ten million potential members will not only expand access but also raise awareness of the cooperative model across the UK. More people will be able to benefit from ethical savings, fair lending, and the opportunity to share in the profits of a local financial cooperative across the UK.
The reform also introduces a major change for students. For the first time, students will be able to join a credit union based on where they study, not just where they live or work. With major universities such as Cambridge and UEA in our region, this will allow thousands of young people to access safe savings, ethical borrowing, and financial education at a crucial stage in their lives.
The expanded membership cap will also enable Eastern Savings & Loans Credit Union to offer salary deduction services to a wider range of employers. Salary deduction is one of the most effective ways to improve financial wellbeing in the workplace something highlighted by the Money and Pensions Service in their guidance for employers: https://maps.org.uk/en/work-with-us/financial-wellbeing-in-the-workplace. Financial stress is one of the biggest factors affecting employee wellbeing, productivity, and retention. When employers support staff to save directly from their pay, it helps reduce money worries, builds resilience, and creates a more stable, focused workforce.
This is especially important given recent research showing that even small amounts of savings can make a meaningful difference. As highlighted by the BBC (https://www.bbc.co.uk/news/articles/cvgv6z5pr92o), small, regular savings help people build confidence, reduce financial anxiety, and create a buffer against unexpected costs. These findings reinforce what credit unions have always known: saving even a little can be life‑changing. By being able to offer Credit Union membership to more communities, we can ensure that even more people have access to simple, ethical savings and the personalised financial wellbeing support that helps turn small steps into lasting, meaningful change, giving households across our region the confidence and stability to plan for a stronger future.
Our Chief Executive, and ABCUL Director, Chris Mole, welcomed the announcement, saying: “We welcome the opportunity the expansion of the credit union common bond will create for more people to access the ethical alternative to high-cost credit from organisations that are committed to financial inclusion. Following our expansion into Essex two years ago we have grown the number of people using credit union services in the county significantly. But there is an area in the south of Essex we could not allow into our membership, and we look forward to welcoming residents there as members as soon as this change in enacted.”
This is a pivotal moment for ethical finance in the East of England and a powerful step toward a stronger, more inclusive, and more financially resilient future.
Parts of the East of England have had limited or no access to credit union services like in South Essex. The expansion allows us to reach more communities with ethical savings, affordable loans, and local financial support.
The government is increasing the membership cap for locality‑based credit unions from three million to ten million people. This means many more residents across the East of England including areas like south Essex will soon be eligible to join Eastern Savings & Loans Credit Union.
More employers will be able to offer salary deduction savings and loans through ESLCU. This supports financial wellbeing in the workplace and helps reduce money worries for staff.
For the first time, students can join a credit union based on where they study, not just where they live or work. This opens access for thousands of students at universities such as Cambridge and UEA.
We reinvest profits locally through community grants and provide support through our in‑house, locally based telephone team, who understand the needs of the communities they serve.
New members will be able to access our full range of ethical financial services, including easy‑access savings, fair and transparent loans, and personalised financial wellbeing support.
