Gov­ern­ment

Rutherglen Reformer - - News -

Scot­land’s First Min­is­ter Ni­cola Stur­geon is back­ing a pro­posal to pro­mote em­ploy­ers to sign up to sup­port credit unions with a pay­roll de­duc­tion scheme.

Ms Stur­geon is sup­port­ing Fer­gus Ewing, Min­is­ter for Busi­ness, Energy and Tourism, who launched Scot­land’s Fi­nan­cial Health Ser­vice and set up a credit union work­ing group to con­sider ways to pro­mote and sup­port credit unions in Scot­land fur­ther.

En­cour­ag­ing a sav­ings cul­ture via pay­roll de­duc­tion and ac­cess to other ser­vices such as af­ford­able credit has been iden­ti­fied as a key route not only to build­ing and strength­en­ing Scot­land’s credit unions, but also an in­no­va­tion which can have sig­nif­i­cant ben­e­fits for em­ploy­ers.

There are over 100 credit unions in Scot­land with a com­bined mem­ber­ship of over 375,000.

It is thought that if em­ploy­ers sign up to the de­duc­tion scheme will have the fol­low­ing ben­e­fits:

Help­ing staff join a credit union and thereby build­ing credit unions’ ca­pac­ity to help fi­nan­cially ex­cluded con­sumers in com­mu­ni­ties across Scot­land is a sig­nif­i­cant demon­stra­tion of a com­pany’s cor­po­rate so­cial re­spon­si­bil­ity.

Es­tab­lish­ing a pay­roll de­duc­tion ar­range­ment with a credit union is very sim­ple and bears min­i­mal costs for em­ploy­ers. Many of the largest out­sourced pay­roll providers will pro­vide this ser­vice for no ad­di­tional charge.

Sav­ing via an au­to­mated pay­roll de­duc­tion sav­ings ar­range­ment helps peo­ple save more and build a buf­fer to cover un­ex­pected ex­penses.

The abil­ity to ac­cess credit and re­pay loans in af­ford­able slices di­rect from pay­roll helps em­ploy­ees stay away from high cost lenders who may dam­age their fi­nan­cial well­be­ing.

Sup­port First Min­is­ter Ni­cola Stur­geon is back­ing the cam­paign to make it eas­ier for em­ploy­ees to have sav­ings de­ducted from their pay

Ju­nior savers The Credit Union is en­cour­ag­ing young savers to sign up

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