'Huge Interest' For Credit Unions in Universal Credit Roll-Out

From next month social landlords will be able to choose their credit union provider – whatever their location – at a time when the sector is already seeing “huge interest” from housing associations ahead of the roll-out of Universal Credit. Changes to the Credit Union Act free unions up to compete more effectively with banks, but it is the move to link the network of unions up with the 11,500 Post Office branches that could give unions a ‘common platform’ on the high street. The Government has pumped investment into the sector to make it more consistent and sustainable as it sees it playing a key role in its welfare reform. From 2013, social housing tenants will receive their benefits directly instead of it going straight to their social landlord. Associations are keen to work with unions who provide ‘benefit direct accounts’ where tenants can elect to have benefits paid into their union account, but where the housing element can be paid to the landlord before it’s withdrawn by the tenant. Some unions already provide the product for a number of private landlords who pay for the service as it maintains higher levels of rental income. Read more on 24dash.