Council loan will help residents on low incomes access banking
Cabinet members today (June 5) approved a scheme to support local people who are on a low income or those who struggle to access conventional banking services.
Councillor Zoe Nicholson, Leader of Lewes District Council, said: "This is a pivotal step in our ongoing efforts to empower all our residents, especially those facing financial hardship.
"Through this scheme, we are directly enabling access to crucial financial products and advice that can genuinely transform lives and build financial resilience within our district."
To implement the scheme, Cabinet members agreed a loan of up to £100,000 to Wave Community Bank, which is a trading name of East Sussex Credit Union Ltd and is regulated by the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), and savings are 100% guaranteed by the Financial Services Compensation Scheme. It offers vital services such as low-interest loans, savings accounts, and financial advice to those often impacted by financial exclusion, helping to alleviate the detrimental effects of poverty.
The loan has been provided for an initial term of five years with an optional five-year extension and underscores the council's commitment to its community wealth building agenda.
Councillor Nicholson added: "This investment aligns perfectly with our community wealth building priority, ensuring that financial power works for local people and places. It's about re-investing our resources locally for the maximum benefit of our residents."
Credit unions are self-help co-operatives whose members pool their savings to provide each other with credit at a low interest rate.
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