‘We must recognise the adverse effects of the current economic situation are not evenly distributed’

In the face of rising inflation and mortgage rates, many Bristolians have been grappling with the repercussions of the ongoing cost of living crisis.

Local food banks have seen a 22 per cent rise in usage from April 2022 to March 2023, while other findings show that people are cutting back on essential healthcare, such as dental appointments and are less able to lead a healthy diet, which could harm their long-term wellbeing.

We must recognise the adverse effects of the current economic situation are not evenly distributed.

The burden of financial strain falls disproportionately on those with lower incomes, further exacerbating the wealth divide within the city.

It’s not just Bristol that’s feeling the burn; according to Fair4All Finance, a staggering 17.5m people in the UK are in financially vulnerable circumstances.

For these individuals and families, finding ethical and community-oriented financial solutions is essential to avoid falling into the perilous cycle of debt.

As a result, people are increasingly turning to credit unions as a lifeline to maintain financial stability.

Over the past decade, credit union membership has more than doubled when compared to 2012, suggesting a growing awareness of the importance of ethical and community-driven finance as a means of weathering the economic storm.

Great Western Credit Union’s (GWCU) membership has grown even more – up by 129 per cent over the same time.

More than half (52 per cent) of borrowers who took part in GWCU’s 2022 Social Impact Report survey stated that they had been “significantly affected” by the cost of living crisis.

As a result, 51 per cent had reduced their expenditures on essentials such as food shopping, and 42 per cent had decreased their gas and electricity usage in an effort to cut household bills.

GWCU stands as a beacon of support for the people of Bristol and the South West in these financially challenging times, allowing both borrowers and savers to gain access to fair and ethical financial services.

The credit union also helps to bolster the local economy as money is pooled together from fellow members, strengthening the community’s financial wellbeing.

Through services like Money@Work, we’re supporting around 42,000 employees across 38 organisations to enable them to access services directly from their payroll, helping to improve financial well-being within the workplace.

In addition, our recently reopened Bond Offer will further increase access to these services for tens of thousands more people across the region allowing us to continue expanding the work we do – though please note, any money invested is at risk.

Explore our offerings and join our mission to create a financially resilient, sustainable and thriving Bristol and South West through local banking.

For more information about Great Western Credit Union, visit: www.greatwesterncu.org/

This is an opinion piece by James Berry, CEO of Great Western Credit Union  

Read next:  

• Leading credit union reopens successful Bond Offer to help combat cost of living crisis
• Great Western Credit Union closes Bond Offer with more than £1.4m
• Great Western Credit Union smashes Bond Offer target in just five weeks

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