London Mutual Credit Union Puts £41,000 a Week Back into Members’ Pockets Says Impact Report

10/04/2026

London Mutual Credit Union has published its most comprehensive social impact report to date, showing how affordable lending is turning borrowers into savers – as a cross-party London Assembly committee writes to the Mayor calling for greater support for London’s credit union sector.

New analysis of over 6,000 loan records and 45,000 active member accounts shows that London Mutual Credit Union (LMCU) saved borrowers an estimated £2.15 million in interest over the past year, equivalent to £41,000 every week, compared to the most realistic alternatives available to them.

The report challenges a widely-held assumption about who credit unions serve. As the rising cost of living puts households under pressure across income levels, the credit union now says its borrowers include NHS staff consolidating credit card debt, graduates trapped in student overdrafts, and service personnel managing the financial pressures of military life. One in five borrowers earns over £50,000 a year.

The report’s publication coincides with a letter from the London Assembly Economy, Culture and Skills Committee to the Mayor of London, calling for expanded mayoral support for the credit union sector. The committee writes: “We heard that credit unions are doing vital work in London, particularly to support financially vulnerable Londoners. We would like to see access to credit unions expand in London, and we believe the Mayor and the GLA have a role to play in enabling this.”

Key findings from the London Mutual Credit Union Social Impact Report 2024–25

• £2.15 million in interest saved by members compared to equivalent alternatives — £422 per borrower on average
• 38% of borrowers rely on benefits as their main income; 33% are lone parents
• 96.8% of current borrowers maintain a savings balance alongside their loan

LMCU’s report shows the cumulative impact of this approach. Members who borrow more are significantly more likely to save: 94% of those who have borrowed over £15,000 lifetime maintain a savings balance, compared to 69% of those who have never borrowed. The average savings balance among the heaviest borrowers is nearly three times that of the lightest. For many members, what begins as a loan becomes the foundation of long-term financial resilience.

Benjamin West, Head of Business Development at London Mutual Credit Union said: “For too long, credit unions have been seen as a lender of last resort for those on the lowest incomes, rather than the mainstream alternative they are in other parts of the world. But as the cost of living stretches household finances across income levels, that picture is changing.

“Behind our figures are NHS staff drowning in credit card debt and graduates who’ve been living in their overdrafts since university. Every week, we return £41,000 to members who would otherwise have paid it to more costly lenders. The Government has made real commitments to grow the sector. With the right mayoral support, London can lead that charge.”

Download London Mutual’s Social Impact Report Here.