Affordable Credit

Project summary

From 2015 through until 2021, Carnegie UK worked with partners to explore how to make affordable credit available to more people across the UK. 

In March 2015 Carnegie UK published an initial discussion paper to widen public debate on this issue. This was followed by a series of roundtables and the establishment of an Affordable Credit Working Group. The group ran throughout 2015 and was co-chaired by Jeremy Peat, OBE (University of Strathclyde International Public Policy Institute) and Angus Hogg, MBE (then Chair of Carnegie UK). The Working Group focussed on examining a range of issues including investor models and mechanisms for developing and growing the not-for-profit community finance sector; investment; partnerships; and financial inclusion wraparound services. In 2016 the working group evolved into an Affordable Credit Action Group chaired by the Very Rev. John Chalmers, former Moderator of the Church of Scotland.

As part of this programme, in 2018 in partnership with Social Investment Scotland, Carnegie UK launched a £1m fund to help tackle the poverty premium for low-income borrowers in Scotland. The fund was available to responsible finance providers as a repayable loan over a 10-year period to help them expand their loan book to reach more people. This initiative had the notable backing of actor and anti-poverty campaigner Michael Sheen who contributed to the short film “Speak out for fair credit” that highlighted the impact not-for-profit lenders can have in borrowers’ lives.

Following extensive engagement with partners across the sector as well as governments and regulators across the UK, Carnegie UK’s work in this area culminated in 2021. One of the final outputs from this programme that pulled together the insight and learning from multiple strands of work over five years was the submission of a series of 10 key policy recommendations to the Scottish Government to help advance and improve access to affordable credit.