Council to Open Credit Union Accounts

A north London council is opening credit union accounts for all new tenants as part of a move to minimise the impact of welfare reform.  Catherine West, Labour leader of Islington Council, speaking before a Department of Work and Pensions select committee, said: ‘Every time we sign up a new tenant in council housing we give them a credit union account even though they may not know what it is at the time.  ‘By putting £2 in it opens up an account and helps deal with loan sharks prevalent on the high street. This is maybe something that can be suggested to all housing associations.’  The select committee was taking evidence as part of an inquiry into universal credit.  This, along with an average 10 per cent cut in council tax benefit, has led to fears that tenants may struggle to pay their rents.  Read more on Inside Housing.