Sunderland City Council is partnering with NEFirst Credit Union to help the city’s residents access savings products and family loans based on affordability rather than credit scoring.
It says this will open up the credit union to residents who may be unable to access products from mainstream banks.
The credit union will work with the authority’s Financial Inclusion team and the national Illegal Money Lending Team (IMLT) to support early intervention and reduce the risk of residents falling into crisis or illegal money lending, the council adds.
Through targeted engagement with schools, family hubs, and community partners, the partnership aims to help families overcome financial stresses that can contribute to wider pressures such as housing insecurity and poor mental health.
“I know many of our residents are feeling increasing financial pressure,” said council leader Michael Mordey, “and tackling exclusion and poverty remains one of our top priorities. That’s why I’m so pleased to be partnering with NEFirst Credit Union to offer a safe, affordable, and accessible alternative for anyone who needs to save or borrow money.
“Through this partnership, we can give residents a trusted option for accessing loans without having to resort to loan sharks, pay day loan companies, and other risky borrowing. It’s an important step in strengthening financial resilience across our city.”
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NEFirst CEO Joanne Angus added: “NEFirst Credit Union is delighted to be working in partnership with Sunderland City Council to strengthen access to fair and affordable financial services for residents, employees and businesses across the city.
”This collaboration reflects a shared commitment to tackling financial exclusion and supporting households who may otherwise struggle to access safe and ethical credit. By working together, we can ensure more people have access to responsible lending, savings opportunities and the financial support they need to build resilience for the future.”
The council says it is also working to discourage illegal lenders. The IMLT has been working with credit unions since 2013, raising awareness of the threats loan sharks present to communities and offering alternatives to help people obtain legal, affordable loans, when needed.
NEFirst covers the whole of the North East, including County Durham, Northumberland and Tyne and Wear. Anyone who lives or works in the area is eligible to join.
