New data shows more than 30,000 people in Lancaster are in financially vulnerable circumstances

The latest figures come from financial inclusion body Fair4All Finance, which has launched the first national campaign to raise awareness of credit unions and community lenders as an alternative to payday and illegal lenders.

For the 31,997 adults identified in Lancaster, being financially vulnerable means that due to personal circumstances such as poor health, experiencing negative life events, low financial resilience or low capability, they are unlikely to access mainstream finance.

Now Fair4All Finance is urging anyone worried about their finances to contact their local credit union or community lender, including CLEVR Money credit union, alongside making sure they are claiming the correct benefits to help with the cost of living crisis.

Anthony Brookes from CLEVR Money said: “We’d urge anyone who is already in receipt of benefits, or somebody who is unsure whether they can claim anything, to check whether they are missing out by using a benefits calculator.

"In just a few minutes you could find that you are missing out on hundreds of pounds of income each month - and if this means you don’t need to take out a loan from us but can instead keep saving, we see that as a good result.”

Lauren Peel from Fair4All Finance added: “With as many as 1.1 million Brits already in the hands of illegal lenders, and a fifth of UK adults having had less than £100 in savings even before the current financial crisis, the community finance sector is a potential lifeline for anyone worried about their finances.

“Credit unions and community lenders have decades of experience in supporting households across the UK to save and borrow. They are experts in lending responsibly, whether that’s to people who are well off or to those in vulnerable circumstances.

"They will be a key sector as we go through a distressing cost-of-living crisis and lenders such as these could be vital resources as local people try to navigate this difficult time.”

An alternative to high street banks, local credit unions assist households in a range of financial circumstances to afford essential items or cover unexpected expenses, as well as helping them to build their financial resilience.

They are not-for-profit and will only lend if it’s the right thing for an individual’s finances and help them to consider other options if a loan isn’t the right choice.

The campaign has also been backed by The England Illegal Money Lending Team, which operates as Stop Loan Sharks in the area.

If you are looking for a credit union near you, visit FindYourCreditUnion.co.uk.

There are other community lenders who are mostly not for profit, and who reinvest any surpluses into serving customers who are in financially vulnerable circumstances, which can be found on FindingFinance.org.uk.

The community finance sector consists of nearly 400 credit unions, which serve specific geographic communities or groups working for a particular employer or industry.

It includes 14 community lenders, which are online and available UK-wide. They are all fully regulated, committed to supporting rather than penalising those who fall behind on payments, and have a social mission of ensuring people have an alternative to illegal or aggressive lenders.