Notice of Motion

Labour GROUP AND GREEN Group

SUPPORTING CREDIT UNION  WORKPLACE SAVINGS SCHEME

That this Council supports the credit union workplace savings scheme within the Council and the benefits it brings to staff and the local economy and therefore:

· requests that officers work with the credit union to ensure awareness of the scheme to all staff members including (but not exclusively) staff conferences, internal communication channels, and new staff induction;

· without obligation, request that all councillors consider joining the scheme and start saving through payroll to show their support for the credit union

Proposed by: Cllr O’Quinn                                 Seconded by: Cllr Davis

Supporting information

1.The Financial Inclusion Centre has recently published its new Interim Report Getting Workforces Saving, part of its 18 month study that is being funded by the Money and Pension Service and delivered in partnership with Leeds Credit Union together with employers; NHS York and Leeds City Council.

The extensive baseline Financial Well-being survey has already been conducted with 1,628 staff across the two participating employers highlighting a number of important findings:

· There is a positive relationship between credit union membership within workforces and more frequent and persistent (or disciplined) saving habits compared to their non-credit union member colleagues.

· Payroll deduction schemes with credit unions appear almost universally popular amongst existing users – 96% stated that they would recommend this method to their co-workers.

· Ease and simplicity is the principal driver for participating in a payroll deduction scheme – 79% stated it was the main reason for saving via this method with the credit union.

· There appears to be a distinct lack of awareness about opportunity to save via payroll deduction – 62% of those not already saving via payroll were unaware they could make regular savings via their employer in this way.

· There is significant interest in saving via payroll amongst workforces – 53% of those without a payroll deduction showed interest in saving via this method.

· Finally, the research also highlights the significant financial struggles facing these workforces and the detrimental bearing this is having on their lives and their work.

While at this stage of the research there is no definitive link to the wider beneficial impact of saving via payroll deduction on workforces, credit union members using automated payroll deduction do appear less anxious and less impacted on their health/well-being, family relationships and their work compared to their non-member colleagues.

Source: Getting Workforces Saving: Payroll Schemes with Credit Unions. Scene setting report – October 2019: Credit Unions

2. Financial Well-being in the Workplace: A Way Forward prepared by the Financial Advice Working Group for Hm Treasury & the Financial Conduct Authority – Final Report March 2017

As this report sets out, the Sub-Group found that:

• Employees need help with their financial well-being, and there is a clear link between well-being and employee productivity.
• Most employers understand this link and are willing to do more to help their employees but need guidance on what they can do.

Financial Well-being in the Workplace: A Way forward