Research suggests that during times of financial crisis, individuals and households return to forgotten and (previously) redundant forms of economic and social behaviour in order to survive.

Given governments’ emphasis, over the past 15 years, on credit unions as a way of supporting those on very low incomes it is perhaps surprising that recent research by Dr Lee Gregory of Bristol University suggests that both credit unions and time banks have been slow to respond to the current crisis.

PSE (Poverty and Social Exclusion) says that over 30 million people are financially insecure so there may still be a role for credit unions within government policy. Yet data for 2011 shows that, with just under 1 million members, credit unions provide only a relatively minor 2.4% penetration into the UK population.

Could it be that payday loan sharks are the ‘forgotten and (previously) redundant forms of economic and social behaviour’ that people are turning to in order to survive?   – credit unions and time banks take note!

Tags: Poverty