About Credit Union Salary Deduction
A proven way to support the financial resilience of staff
Events of the past year have prompted many employers to take a fresh look at how they support staff financial well-being, This can include supporting colleagues to build a savings safety-net or to reduce the burden of personal debt, one of the leading causes of workplace stress.
One way to achieve this is through a salary deduction scheme, an employee benefit which enables staff to voluntarily have savings deducted from their monthly payy. Credit unions (community-owned financial institutions) are the UK’s leading provider of these types of services.
A Popular Employee Benefit
Regular Savings
Staff can set up a credit union savings account, and have anything from £10-500 paid into it each month. Because it’s deducted directly from salary, it’s easy to mantain the habit, and there’s no temptation to spend it first.
Ethical Loans
Many credit unions also give your staff the option to borrow, either immediately or after a period of membership. As responsible lenders, credit unions offer low rates and provide an responsible option for both planned and emergency borrowing.
Financial Education
Education and money management is an important part of credit union’s ethos. Your credit union will often able to play a role in the wider training and support you give your staff, such as by attending training events and roadshows.
Why Choose A Credit Union?
Partnering with a credit union may be just one of several options you are considering. Here’s why we think that we are the right fit:
Experienced
Credit unions are well-established, properly regulated, and in many cases, have built up relationships with local employers – big and small – over many years.
Low-Tech = Low Risk
Technology-oriented providers may be impressive, but, as with all IT projects, costs and risk can be high. Our solution is simple and straightforward to implement.
Ethical
Credit unions are community-owned, and aren’t under pressure from private equity to turn a profit from your staff. We’re in it for the right reasons.
ESR Impact
Partnerships between credit unions and employers help to support their work with financially excluded and lower income members in the community.
Fully Regulated and Insured
All credit unions in the UK are regulated by the Financial Conduct Authority (FCA) and authorised by the Prudential Regulation authority (PRA). Employee deposits up to £85,000 are also insured under the FSCS.
Why Financial Well‑being matters
- Percentage of employees report being ‘somewhat’ or ‘very’ stressed by their financial situation 60%
- Percentage of employees who say they have no savings at all. 26%
- Percentage of employees with money worries who say they are ‘not working at their best’ 59%
- Percentage of younger employees who say their mental health is affected by the cost of living. 90%
Increasing staff happiness and reducing stress
Each month before you receive pay in the bank it’s gone, so you don’t even miss it. Would highly recommend to anyone.
– Lee, Royal Navy
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