On 18 March 2026, HM Treasury (HMT) issued its response to its earlier Call for Evidence on the merits of and considerations for changing the credit union common bond requirement for membership in Great Britain, under the Credit Unions Act 1979.
HMT states that the government intends to bring forward changes to the common bond in Great Britain.
When parliamentary time allows, the government will legislate to:
- Increase the potential membership cap on the locality bond from 3 million to 10 million. This will significantly expand the potential size of locality-based credit unions, which make up 79% of the sector, and reduce uncertainty regarding mergers.
- Allow credit unions to permit students to join locality-based credit unions, in addition to those who reside or work in the geographical area.
- Allow credit unions to admit members’ relatives into a credit union regardless of whether they live in the same household as the qualifying member, as well as individuals who live in the same household as the qualifying member. This will better reflect modern family dynamics and broaden the membership base.
- Allow credit unions to retain members of occupation and employer bonds as fully qualifying members upon retirement, including allowing retirees to join a credit union after retirement has begun. This will also apply to locality bonds where members are eligible based on employment within the locality.