Access to affordable credit is not a niche issue. It affects people’s lives, choices and futures – and recently we saw exactly why urgent action is needed.
We were proud to help bring together MPs, the FCA, and sector leaders for the Affordable Credit Roundtable, hosted by Gareth Thomas MP and organised by the APPGs on Fair Banking, CDFIs and Mutuals, together with the Lab.
The picture that emerged was stark but clear:
Demand for small, affordable loans remains high – but the supply of affordable credit has fallen sharply over the past decade. People on lower incomes are too often left paying a “poverty premium,” or shut out of mainstream credit altogether.
Banks have a bigger role to play. Some are already partnering with credit unions and CDFIs, but engagement varies widely, and many customers don’t know what their options are beyond their existing bank.
We heard strong support for greater accountability – including proposals for banks to disclose and report on lending outcomes for underserved groups through a Fair Banking Act.
Credit unions and CDFIs are proving what works, but they’re growing from a small base and don’t yet have the capacity to meet demand alone.
Most powerfully, we heard from lived experience speaker Charlotte, who described being pushed towards high-cost credit at a vulnerable moment – and the difference fair, supportive lending through a credit union made. As she put it: “I don’t want banks to feel like we’re attacking them. We all need to work together.”
The consensus in the room was clear: this isn’t about a lack of demand. It’s about a lack of supply – and a lack of urgency. Future policy needs to focus on scaling up safe, affordable lending, not just measuring the gap.
We’ll keep pushing this conversation forward with Parliament, the FCA, and partners across the sector. Thank you to everyone who joined us and shared their expertise and experience.
You can read more about this work here.
*Parts of this post were edited using AI