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A group of Labour<\/a> MPs have called on Rachel Reeves to support a huge expansion of credit unions to boost access to cheap credit for millions of people on low incomes.<\/p>\n The move coincides with celebrations on Monday to mark the 10-year anniversary of the UK\u2019s military credit unions, which are supported by Queen Camilla and provide \u201can ethical and affordable alternative to high-cost lenders\u201d for service personnel.<\/p>\n The MPs, including several parliamentary committee chairs, said the chancellor should enhance the financial inclusion bill going through parliament by adding a duty on every housing association to promote credit union membership to their tenants.<\/p>\n In a letter to Reeves seen by the Guardian, the MPs also asked that credit unions be given access to the government\u2019s Help to Save product, which lets people on a low income get a bonus of 50p for every \u00a31 they save, and is now only on offer from mainstream lenders.<\/p>\n They said: \u201cSince 2010, many opportunities to help credit unions expand in the UK to offer more affordable credit and better savings rates to far more people have been missed.<\/p>\n \u201cGiven the cost of living crisis, the need to encourage more investment in all our communities, continuing activity by loan sharks and the ongoing retreat of banks from all but the wealthiest high streets, a renewed cross-government focus on the future expansion of credit unions is overdue.\u201d<\/p>\n Credit unions have struggled to make headway in the UK, in contrast to many countries in the EU and the US. Some credit unions mimic banks, offering savings and current accounts from high street premises, while others are more modest, lending relatively small amounts and based in properties shared with other community groups.<\/p>\n However, membership has grown by 9%<\/a> between 2020 and 2025 to more than 1.5m members. Outstanding loans amounted to almost \u00a35bn<\/a>, with almost half accounted for by credit unions in Northern Ireland, according to the latest Bank of England data. The total amounts to less than 1\/20th of the estimated \u00a3120bn of outstanding non-mortgage financial debt<\/a> held by UK households.<\/p>\n Gareth Thomas, the MP for Harrow West and one of the signatories, said the military credit union in the US had become a huge lender and a model for the three military credit unions in the UK: Serve and Protect; First Defence Finance, which is part of the Plane Saver credit union; and Forces Finance, part of London Mutual credit union.<\/p>\n