Credit unions Highlighted as Key Part of UK’s Growing Democratic Economy

02/10/2026

Credit unions continue to make a significant contribution to the UK’s co-operative and mutual economy, with new figures showing membership has reached 2.3 million and combined income has increased by 6% to £444.5 million.

The figures are published in the Co-operative and Mutual Economy 2026, the annual report from Co-operatives UK examining the scale and contribution of co-operatives, mutuals, building societies and employee-owned businesses across the UK.

The report shows that the wider democratic economy generates £241.3 billion in annual income, supports more than 1.7 million jobs and represents 70.4 million memberships.

For credit unions, the latest figures highlight both the scale of the movement and the opportunity to reach more people with member-owned financial services.

Credit union membership continues to grow

The report shows that credit union membership increased by 0.8% to 2.3 million, while combined income increased by 6%, from £419.2 million to £444.5 million.

The number of credit unions fell from 363 to 352, reflecting continued consolidation within the sector, while employment remained broadly stable at 2,575 people.

The figures come against a backdrop of continued pressure on household finances and highlight the role credit unions can play in helping people build financial resilience through savings and access to affordable credit.

The report points to figures from the Financial Conduct Authority’s 2024 Financial Lives Survey, which found that 10% of UK adults had no cash savings and a further 21% had less than £1,000.

More than two in five people also did not have enough savings to cover three months of living expenses if their main source of household income disappeared.

Credit unions, as member-owned financial institutions, have an important role to play in providing savings and responsible access to credit while ensuring their services are focused on the needs of their members.

A sector-wide plan for growth

The latest figures also come as the credit union movement works towards an ambitious shared vision for future growth.

The Credit Union Growth Plan, led by All Together Money on behalf of the credit union sector, sets out a roadmap to double UK credit union membership from 2.2 million to 4.4 million by 2035.

The plan was developed through collaboration between credit union representative bodies across the UK, reflecting a shared commitment to increasing the reach, resilience and impact of credit unions.

It also sets out an ambition to treble lending to £8 billion, while highlighting the potential for greater financial inclusion to contribute an estimated £6.4 billion in additional annual economic growth.

The Growth Plan identifies five key areas for action: collaboration and consolidation; leadership and skills; innovation and infrastructure; legislation and regulation; and appropriate investment.

It comes as credit unions are increasingly recognised as an important part of the wider co-operative and mutual economy and follows the Government’s renewed focus on financial inclusion and credit union reform.

Part of a growing democratic economy

The Co-operative and Mutual Economy 2026 report highlights the wider economic contribution of organisations that give people a meaningful stake in the businesses and services that shape their lives.

Across the UK, the democratic economy now represents more than 70 million memberships and generates £241.3 billion in annual income.

Co-operatives UK CEO Rose Marley said:“We know government’s ambition is for good growth – growth that’s fair, sustainable and broadly shared. Co-operatives show what that looks like in practice. They outperform other businesses on fair pay, gender equity, investment in the regions and resilience.”

Rose Marley added: “We are the good growth in every postcode – the evidence is there. The opportunity now is to create the wider conditions for co-operatives to flourish and scale,”

Rose also highlighted the importance of recent government commitments, saying: “We shouldn’t underestimate what’s already been committed,” Rose said. “The Local Power Plan and Pride in Place create important opportunities for communities to own assets, shape investment and build local wealth. We want to work with government to make sure that potential is realised.

“But doubling the co-operative and mutual economy will also require action across the wider business environment – improving co-operatives’ access to capital, expanding tailored business support and modernising outdated legislation.”

The report highlights credit union reform alongside wider measures designed to expand democratic ownership and support the growth of the co-operative and mutual economy.

A significant opportunity for credit unions

For credit unions, the latest figures provide a snapshot of a sector already serving millions of people, while the Growth Plan sets out a clear ambition to extend that reach significantly over the next decade.

With membership currently at 2.3 million, reaching 4.4 million by 2035 would mean millions more people accessing member-owned financial services and the benefits of the credit union model.

The ambition reflects the sector’s track record. Between 2002 and 2012, UK credit unions doubled their membership and trebled lending and savings. The Growth Plan sets out how targeted reform, investment and collaboration could help the sector return to stronger growth.

As the wider co-operative and mutual economy considers how to unlock its potential, credit unions are already demonstrating the contribution member-owned organisations can make to financial inclusion, household resilience and communities across the UK.

The Co-operative and Mutual Economy 2026 report is available from Co-operatives UK.