Leeds Credit Union (LCU) has reported a record start to 2026, underwriting £3 million in lending during the first quarter as the Government moves to overhaul the community finance sector.

The social lender, which serves one of the UK’s fastest-growing business hubs, issued £1.2 million in loans in March alone. LCU estimates that by providing an affordable alternative to high-cost doorstep lenders, it has saved local residents approximately £2.3 million in interest repayments over the three-month period.

The surge in demand coincides with the launch of the Government’s £30 million Credit Union Transformation Fund. Managed by Fair4All Finance and backed by dormant asset funding, the initiative is designed to modernise the sector’s technology and encourage regional collaboration.

Under the Government’s new Financial Inclusion Strategy, ministers are also proposing reforms to "common bond" rules. These changes are expected to broaden membership eligibility, allowing credit unions to scale more effectively across Great Britain.

The growth is particularly significant in Leeds, where data shows 84 neighbourhoods are among the most deprived 10% in England. The city currently ranks fourth among English core cities for the number of residents living in high-deprivation areas.

James Brown, Chief Executive of Leeds Credit Union, said: “This is about much more than a lending figure. It is about helping people borrow safely, deal with everyday costs and avoid being pushed towards high-cost credit when money is tight. Our record start to the year shows the scale of demand for a fair alternative, and just how much more credit unions can do for local communities when affordable finance is available.”