Cumberland Council is launching a pilot scheme rewarding people for saving money.
Fifty people will be invited to save at least £5 a month and receive a £100 bonus after six months.
The scheme is funded by the council and delivered by Whitehaven and Egremont District Credit Union. It is currently a pilot scheme, open only to residents of the former borough of Copeland and is also encouraging safe borrowing.
Councillor Lisa Brown, deputy leader of Cumberland Council, and portfolio holder for governance and thriving communities, said: “We hope this scheme will encourage people who don’t usually save to do so.
“Financial resilience – ‘rainy day’ money – is really important. Our staff are seeing more people with low incomes, no savings and increasing costs. Through this scheme we can refer them to the credit union and offer a real financial incentive for saving.”
The credit union also allows people to borrow at reasonable rates in a bid to help people avoid the need for loan sharks or other borrowing methods.
Nikki Bates, development manager at Whitehaven and Egremont District Credit Union, said: “This is a fantastic opportunity for people in our local community to get support in learning good money habits.
“It’s not easy to save, especially with the current cost of living crisis. This scheme, funded by the council, shows just how much we can support people by working together.
“With each client, we conduct a full budgeting review, and sign them up as a credit union member. We can also point them towards other agencies who could help them in different ways.
“The resident will be asked to save a minimum of £5 each month for six months. After this, WEDCU will pay £100 into their account in month seven.”
Councillor Brown added: “Credit union members also have access to loans, based on how much they save. We are keen to promote these as an alternative to high-cost high street loans, and loan sharks who target their own communities and trap people in long-term debt.”
The project also includes a ‘refer a friend’ incentive, with members receiving £25 if they introduce someone else to the credit union.
The £100 bonus savings scheme is a pilot project and is only available to 50 people, who must live in the area covered by the former Copeland Borough Council.
