The cost of living crisis has significantly impacted thousands of people across the South West, according to the 2022 Social Impact Report released by the Great Western Credit Union (GWCU) today. The Credit Union, which has been offering financial support to over 18,000 individuals, has highlighted the grim reality of those affected, with 52% of borrowers stating that they have been “greatly” or “extremely” affected by the crisis.
In a bid to adjust to these rising costs, 51% of respondents have reduced their spending on food and other essentials, while 42% have cut down on gas and electricity usage. The report also revealed a snapshot of the borrowers, with 38% earning under £18,000 a year, 16% from ethnic minority backgrounds, around half (47%) being single parents, and a staggering 83% currently renting their homes.
The report further detailed the Union’s initiatives in providing over 1,100 loans to people in the bottom 20% of areas by levels of deprivation, saving them over £500,000 in interest payments compared to high-cost lenders. In addition, the Credit Union has assisted 128 refugee families through the UK Resettlement Scheme, further cementing its role as a supportive financial institution.
Following the pandemic and the ongoing cost of living crisis, we have seen more people financially struggling than at any point in recent memory. This Social Impact Report provides insight into how we have helped tens of thousands of people across the region to become better off than they might otherwise have been, though we still see the need for growth in income to meet the pressure of increased costs which has hit so many of our members
James Berry, CEO of Great Western Credit Union
Today’s revelation comes on the same day as the Bank of England’s announcement of an interest rate hike to 5%, a move that could potentially exacerbate the current cost of living crisis.
In light of this, Berry highlighted GWCU’s plans to further extend its reach:
Now, we’re planning to go even further with our current Bond Offer which will grow our services to ensure we’re supporting those most at risk of financial exclusion and anyone who would most benefit from access to affordable, fair and ethical credit
James Berry, CEO of Great Western Credit Union
The Bond Offer, launched by the Credit Union in April 2023, has already surpassed its initial target of £800,000. With 26 days left to reach its stretch goal of £2m, the investment will allow GWCU to expand its services, including its digital platform and the employer partnership scheme, Money@Work. This initiative currently helps over 42,000 people across 38 organisations to access services directly from their payroll.
As the cost of living continues to rise, and with the Bank of England’s interest rate now set at 5%, the role of institutions like the Great Western Credit Union has never been more critical in ensuring the financial wellbeing of individuals across the South West.
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