ADDING VALUE

ABCUL ANNUAL REPORT

2013-2014

CONTENTS
PRESIDENTS FOREWORD

PAGE 4

ADDING VALUE FOR MEMBERS

PAGE 5

CONFERENCES AND EVENTS

PAGE 6-7

POLICY AND COMMUNICATIONS

PAGE 8-9

FACTS AND FIGURES

PAGE 10

ACCOUNTS

PAGE 11-12

BOARD OF DIRECTORS

PAGE 13

ABCUL STAFF

PAGE 14

SUPPORTERS AND PARTNERS

PAGE 15

2 ABCULAnnual Report 2013-2014

ABCUL:
 is the main trade association for credit unions in Britain
 is a co-operative of co-operatives, governed by
volunteer directors
 represents credit unions to governments,
policy makers and the media

In its 50th anniversary year, Britains credit union

movement has a proud record of supporting its
members through thick and thin. Over the next 50
years, I want to see credit unions continue to grow
and play a full part in a more competitive and diverse
financial services landscape for their customers.
Andrea Leadsom MP
Economic Secretary to the Treasury

 provides a full range of information, training and

development services to help its members grow
as sustainable financial co-operatives
This report shows how ABCUL
worked towards its vision that
credit unions will become the
primary source of affordable,
high quality and ethical financial
services for the people of Great
Britain between October 2013
and September 2014.

ABCULAnnual Report 2013-2014 3

PRESIDENTS FOREWORD
It has been an honour to serve as ABCUL President during a year which has
seen us mark several key milestones for the British credit union movement.
We celebrated 50 years of credit unions in
Great Britain as we recalled the first credit
unions in our country, and perhaps more
importantly, the pioneers who were the
driving force behind the establishment and
development of our movement.
From credit unions that often started with
a handful of people in a hall or a meeting
room saving a few pounds each, 2014 saw
us reach one million adult members in
British credit unions, and members shares
broke the 1 billion mark for the first time.
This continued growth of credit unions has
been supported by the UK, Scottish and
Welsh Governments, with HM Treasury
launching a Call for Evidence to consider
potential reforms to best facilitate further
credit union development.
This year has also seen a group of credit
unions co-operate and collaborate in
the development of shared services
through ABCULs subsidiary Cornerstone
Mutual Services, with funding from the

4 ABCULAnnual Report 2013-2014

Department for Work and Pensions Credit

Union Expansion Project.
It was an honour to be elected ABCUL
President in March, and I hope to build
on the excellent work of our previous
President, Sharon Angus-Crawshaw.
We know from international experience
that credit unions thrive when they
co-operate and work together in the true
spirit of co-operative principles. This
co-operation among co-operatives is
what created ABCUL, and allows our trade
association to deliver significant value
to credit unions up and down England,
Scotland and Wales.
I know this continued co-operation among
credit unions can further strengthen
ABCUL as we work towards our vision of a
thriving credit union movement.
Robert Kelly
ABCUL President

ADDING VALUE FOR MEMBERS

ABCUL is the largest provider of advice, guidance and training
for credit unions in Britain.
Every member credit union has a
dedicated Member Relationship
Manager available to help them with
any enquiries. This is in addition to the
range of information guides on the
members section of the ABCUL website,
and the opportunities for discussion and
knowledge-sharing afforded by the
online forums.

Last year, the value of ABCUL

membership included:
124 information guides published
A weekly bulletin, including updates
and briefings
Help with around 1,600 enquiries
Helping 53 credit unions change
their rules
16,782 phone calls answered
13,708 outbound phone calls
Training for 519 people 260 in
classroom sessions and 259 online
6,705 credit union staff and volunteers
signed up for the members section of
the ABCUL website
1,216 contributions to the
online forums
307,555 visits to the ABCUL website
352,782 visits to
findyourcreditunion.co.uk

What our members say about

ABCUL training:
Surprisingly relaxed course which helped
enormously. I felt very upbeat afterwards
and am determined to take further training
if this is an example of ABCUL training.
Very useful and informative course. Ill
recommend to all directors to attend.
First course I have ever done like this;
found it very enjoyable and easy to
keep up with.
Well delivered, being given the
opportunity to ask questions. Clear and
precise information provided. Thank you.

ABCULAnnual Report 2013-2014 5

CONFERENCES AND EVENTS

ABCULs AGM and Annual Conference
is the largest credit union event in
Britain. Last year, more than 360
delegates joined us in Manchester to
celebrate 50 years of credit unions and
to hear from speakers including Leader
of Manchester City Council, Sir
Richard Leese, President and CEO of
the World Council of Credit Unions,
Brian Branch, and a range of
representatives from Government,
regulators and key stakeholders.
ABCUL organised a series of events at
Westminster as secretariat of the APPG
on Credit Unions. This included our
celebration of International Credit Union
Day, which was addressed by Damian
Hinds MP, Welfare Reform Minister Lord
Freud, and Mark Lawton, Vice President of
Navy Federal Credit Union the worlds
largest credit union.
We also celebrated International Credit
Union Day at the Scottish Parliament,
where our reception was addressed by
the Business Minister, Fergus Ewing MSP.

6 ABCULAnnual Report 2013-2014

Credit unions play a vital role in

helping people build up savings and
have access to loans.
Lord Freud
Minister for Welfare Reform

We organised the launch of the Lloyds

Banking Group Credit Union
Development Fund, which is channelling
4 million in investments into credit
unions through The Credit Union
Foundation, with a reception addressed
by the Economic Secretary to the
Treasury, Andrea Leadsom MP.
The Credit Union Foundations work
was celebrated at the House of Lords,
with a very special address from the
Archbishop of Canterbury.
ABCUL was represented at the major
UK party conferences, and ABCUL
representatives spoke at conferences
held by a range of partner organisations,
including the World Council of Credit
Unions, the Building Societies Association,
the Chartered Institute of Housing and
the Money Advice Liaison Group.
We convened the Larger Credit Unions
Advisory Committee to give our larger
members regular opportunities to share
learning and experience with similar-sized
credit unions around the country.

This is a really exciting time for

the credit unions. But we have to
recognize that this is the long haul. Its
a marathon not a sprint, and therefore
we need to keep going at a measured
pace, developing so everyone knows
about credit unions, and people pick it
up. In 10 to 15 years it should be the
norm, not the exception.
Most Reverend Justin Welby
Archbishop of Canterbury
ABCULAnnual Report 2013-2014 7

POLICY AND
COMMUNICATIONS
Credit unions are good
news for local communities
as they play a valuable
role in providing financial
services and products to a
wide range of customers.
A key success factor for any
credit union is the support
of large local employers
who may provide savings
deducted direct from wages
for staff who sign up.
John Swinney MSP
Scottish Government
Finance Secretary

ABCULs role representing credit unions to

Government, regulators, the media and other
stakeholders adds significant value for our members.
Last year saw ABCUL submit
19 consultation responses and issue
24 briefings for members updating
on key policy issues. We supported
Parliamentarians ahead of debates and
questions on 14 occasions. We held
more than 50 meetings with UK, Scottish
and Welsh Governments, including
12 meetings with Government Ministers,
and gave oral evidence to 2 Parliamentary
Committee inquiries. We also met and
liaised with regulators at UK and EU levels
on more than 10 separate occasions.
ABCUL also provides the secretariat to
both the All-Party Parliamentary Group
on Credit Unions at Westminster, and
to the Scottish Parliaments Cross-Party
Group on Credit Unions, and organised
10 meetings in total, including 4 with
Ministerial speakers.

8 ABCULAnnual Report 2013-2014

ABCULs policy work included calling

for and responding to the HM Treasury
Call for Evidence (launched by the
Economic Secretary to the Treasury
Andrea Leadsom MP at ABCULs summer
reception); securing a seat on the
Archbishops Task Group on Responsible
Credit & Savings; influencing party policy
for the 2015 General Election; continuing
to promote proportionate regulation of
credit unions; supporting measures to
enhance access to banking and banking
competition, such as the Payment
Systems Regulator; encouraging payroll
deduction, including in the Armed Forces;
giving evidence on the Bankruptcy and
Debt Advice (Scotland) Bill; and securing
credit union support in the Scottish
Governments 12 Days of Debtmas and
Helping Hand with Debt campaigns.

ABCUL is also a member of the European

Network of Credit Unions which meets twice
yearly and represents credit union interests
across Europe. Working with our partners
from neighbouring credit union movements,
we press the European Union to recognise
and support the place of credit unions in
directives which originate from Brussels.
ABCUL is proud to be a member of the
World Council of Credit Unions, sharing
the knowledge and experience of credit
union movements across the globe and
co-operating to represent the movements
interests in international financial
negotiations such as Basel III, tax information
exchange and anti-money laundering.
ABCUL representatives have been
interviewed for a series of newspaper articles
and TV and radio features, including on
BBC News, LBC
Radio, Radio
Clyde, BBC Radio
5 Live, and BBC
Radio Scotland.

ABCULs policy and lobbying work has secured real benefits for our
member credit unions, including contributing to:
Estimated net benefit of 51 million
from legislative reform
 Concessions from Financial Reporting
Council worth 7 million per year

Securing exemption from FATCA

compliance for all but the very largest
credit unions and light-touch regime for
the largest

 Interest rate cap on credit union loans

raised to 3% per month, making small,
short-term loans more sustainable for
credit unions that wish to offer them

 Exemptions from Financial Ombudsman

Service standard and PPI supplementary fees

 Securing commitment from Government

to review credit union legislation and
work with regulators to ensure
proportionate regulation

 Ensuring Universal Credit

can be paid into any credit
union account

Retaining and extending exemptions from

consumer credit regulation, secured
exemption from the interim permission fee
and special lower ongoing fees
 Exemptions from potentially onerous key
EU Directives, including the Mortgage Credit
Directive and the Deposit Guarantee
Scheme Directive
 Securing payroll deduction facilities for
credit unions serving whole Armed Forces
and promoting the importance and value of
payroll savings generally
 Achieving new Basel III liquidity rules making
credit union deposits more attractive to
banks and building societies
 Securing a lighter touch Senior Managers
Regime for smaller credit unions and
pressing for its extension

 Retention of special minimum

regulatory fees

 Reforms to debt management

and debt relief in Scotland to
reduce use of Protected Trust
Deeds and secure a fairer
return for credit unions

Credit unions have a key role to play

in rebalancing our economy by
encouraging higher rates of saving
and ensuring affordable access to
credit. They do vitally important
work to promote greater financial
understanding and responsibility.
Danny Alexander MP
Chief Secretary to the Treasury
ABCULAnnual Report 2013-2014 9

FACTS AND FIGURES

In the year to September 2014:
238 credit unions were members of ABCUL
The average ABCUL credit union grew its membership by 16%
Credit unions in Britain served over 1.1 million people
Savings in credit unions reached over 1 billion
Credit union lending reached 687 million
British credit union assets hit 1.23 billion

British credit union growth 2004-2014

1400
1200
1000
800
600
400
200
0

2004

2005

2006

2007

2008

2009

Total membership incl juniors (thousands)

Loans ( millions)

10 ABCULAnnual Report 2013-2014

2010

2011

2012

Shares ( millions)
Assets ( millions)

2013

2014

Source: PRA

Those of us who champion credit

unions have always believed that
what makes credit unions different
is not just that they provide an
affordable and responsible financial
alternative, but that credit unions
are motivated by the interests of the
communities they serve.
Gareth Thomas MP
Chair of the Co-operative Party

CONSOLIDATED ACCOUNTS

Income and Expenditure

FOR THE YEAR ENDED 30 SEPTEMBER 2014

INCOME
Members Dues
Other trade body income
CUEP and other services income

EXPENDITURE
Direct costs of trade body
Direct costs of CUEP and other services
Staff costs
Office costs
Professional costs

(DEFICIT) / SURPLUS FOR THE YEAR BEFORE TAXATION
Corporation Tax charge
(DEFICIT) / SURPLUS FOR THE YEAR BEFORE TRANSFERS
Transfer from / (to) designated funds re Forums

375,226
6,795,761
1,350,723
286,766
49,556

2014

747,260
463,098
7,695,443
8,905,801

(8,840,032)

65,769

(2,207)

63,562

(21,424)

(DEFICIT) / SURPLUS FOR THE YEAR TRANSFERRED TO GENERAL FUNDS

ACCUMULATED GENERAL FUNDS B/F

ACCUMULATED GENERAL FUND C/F

42,138
441,171
483,309

474,284
1,943,542
905,519
170,178
19,903

2013

727,019
531,984
2,381,721
3,640,724

(3,513,426)

127,298

(5,297)

122,001

(20,588)

101,413
339,758
441,171

There are no recognised gains and losses other than those passing through the income and expenditure account.

ABCULAnnual Report 2013-2014 11

BALANCE SHEET
AT 30 SEPTEMBER 2014

FIXEDASSETS

2014

7,914

2013

17,551

CURRENT ASSETS
Stock
Debtors
Cash at bank

-
3,693,770
1,111,307
4,805,077

800
1,568,318
1,472,479
3,041,597

CURRENT LIABILITIES
Creditors

4,057,291

2,367,009

NET CURRENT ASSETS

747,786

674,588

TOTAL ASSETS LESS CURRENT LIABILITIES

755,700

692,139

LIABILITIES GREATER THAN ONE YEAR

(-)
755,700

(-)
692,139

SHARE CAPITAL

237

238

ACCUMULATED FUNDS

Designated funds in respect of Forums

Designated funds for office relocation & refurbishment

Designated funds for research & development

General funds

102,154
50,000
120,000
483,309
755,700

80,730
50,000
120,000
441,171
692,139

12 ABCULAnnual Report 2013-2014

BOARD OF DIRECTORS

The following served on the ABCUL Board between October 2013 and September 2014:
Robert Kelly
Director for Scotland and President (from March 2014)
Angela Hampson
Director for Scotland and Vice President
David Martin
Director for the North East, Yorkshire and Humber and Treasurer
Kevin Waters
Director for the West Midlands and South West and Secretary
Sharon Angus-Crawshaw Director for Wales (until August 2014) and President (until March 2014)
Grenville Bingham
Director for the South East
Derek Buckland
Director for the South East (until February 2014)
Frank Duffy
Director for the North West
Peter Evans
Director for the West Midlands and South West (from March 2014)
Alan Hignett
Director for the North East, Yorkshire and Humber
Don Kehoe
Director for the South East (from June 2014)
John Macdonald
Director for the North West
Carol McHarg
Director for Scotland
Clive Rix
Director for the East
Robert Taylor
Director for the North West
Andy Wright
Director for Scotland

We want to make sure credit unions

go from strength to strength and
become a permanent sight on high
streets across Wales. They are a real,
community focused alternative to
traditional banks and payday lenders.
Jeff Cuthbert AM
then Welsh Government Minister for
Communities and Tackling Poverty

SUPERVISORY COMMITTEE
Denis Greenall
Peter Evans
John Weir
Ian Atkins

(until March 2014)

(from March 2014)
(from September 2014)

ABCULAnnual Report 2013-2014 13

With the growing scourge

of payday lending across
the UK, credit unions are a
viable, cheaper, non-profit
local alternative and should
be encouraged.
Martin Lewis
Money Saving Expert

ABCUL STAFF
Chief Executive Mark Lyonette has led ABCUL since 2004. At the end of
September 2014, he led a staff team made up of:
Clare Atkinson
Conference and Events Manager
Matt Bland
Policy Manager
Phil Davies
IT Manager
Rosanna Donovan
Senior Member Relationship Manager
Anna Douglas
Member Relationship Manager
Hassan Hussain
IT Administrator
Marcus Iles
Member Relationship Manager
Karen Knott
Web Content and Online Training Co-ordinator
Judith McKenzie
Executive PA
Frank McKillop
Policy Manager (Scotland)
Maureen Mooney
Business Support Administrator
Moline Nensa
Finance Officer
Anne Odudu
Finance Manager
Stephen Pate
Finance Manager
Rhamis Sahibzada
Finance Officer
Abbie Shelton
Principal Advisor
Carol Strand
Finance Controller
Vikki Strand
Finance Administrator
Annette Warne-Thomas Group Services Director
During the year, we said goodbye to Sarah Anwar, Karina Byron, Jake
Hankinson, Sam Hardwick, Maria Heneghan, Stephen Kay, Helen
Lamont, Claire Lewis, James Moran and Mary Patel. We thank them for
their work with ABCUL and wish them all well with their future endeavours.

14 ABCULAnnual Report 2013-2014

SUPPORTERS AND PARTNERS

ABCUL is grateful for the support
of a range of organisations who
share our vision of a stronger
credit union movement.
We wish to extend our thanks to:
Barclays
The Church of England
The Church of Scotland
Citi Foundation
The Co-operative Group
CUNA Mutual Group
Lloyds Banking Group
Santander
We worked with a range of partners
during the year to deliver services to our
members including:
Mitchell Charlesworth Auditors
Helen Bolton Management Accountant
DWF Legal Advisors
Ethos Public Relations
Experian
Hallidays
ABCULAnnual Report 2013-2014 15

ABCUL is the main trade association

for credit unions in England, Scotland
and Wales. For more information on
the Association or any of its services,
please contact the Head Office:
ABCUL
Holyoake House,
Hanover Street,
Manchester M60 0AS
Tel: 0161 832 3694
Email: info@abcul.org
Web: www.abcul.coop

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