Finchley and Golders Green MP RUDI VIS explains the financial inclusion scheme and urges credit unions to apply for funding

Financial inclusion is all about social justice - it's making sure everyone, especially some of the more vulnerable members of our community, are able to manage their money and plan for the future. It's also about safeguarding people's rights, and making sure they do not face unnecessary costs.

Ensuring everyone in the UK can access financial services and manage their money is the objective of an action plan for 2008-11 for financial inclusion, launched by Kitty Ussher, the economic secretary to the Treasury.

The Government will spend £135 million on initiatives to promote financial inclusion.

This includes: - £12m to fund staff to promote financial inclusion locally, with a focus on increasing the availability and awareness of home contents insurance for low-income people, in particular in areas affected by the recent floods - £76m to fund free face-to-face money advice - £38m to increase consumer access to affordable credit through credit unions and other third sector lenders.

Credit unions play a key role in ensuring people have access to fair and affordable credit. They have proven successful across the borough since they were launched by the previous Labour council in Barnet, and I urge them to apply for some of the money made available.

I am proud of this Government's championing of credit unions, and I pay tribute to those organisations in my constituency that are doing such amazing work.

These lenders provide small, affordable loans (typically £500 or less) to customers who might otherwise be dependent on expensive or illegal alternatives, such as loan sharks.

We need to make sure people are given all the help they need in coping with financial pressures and avoiding borrowing large amounts. The commitment to more face-to-face financial advisers is especially welcome, as I know from constituents that getting the right advice on these matters can be difficult. I know these proposals will make a real difference to peoples lives.

A £2m fund from the action plan will also allow the Save Xmas campaign run by the Office of Fair Trading to continue to operate. Save Xmas is an awareness campaign to help consumers understand their options when saving for Christmas and works with community groups and partners across the UK. It was set up following a review into the collapse of the Farepak Christmas hamper scheme.

Action plan funding will also support money lending teams in every region of Great Britain for the next three years, run by the Department for Business, Enterprise and Regulatory Reform. The teams work to increase awareness of alternative legal ways to borrow money, and give victims the confidence to overcome fear and intimidation and report loan sharks.

Credit unions in Barnet can contact me or Kitty Ussher for more information on applying to the fund.