Right now, an outdated law is holding one of our most important community institutions back.

Credit unions provide an essential alternative to traditional banks. These financial co-operatives are run by and for their members rather than for profit, and around the world they have proven to be powerful vehicles for financial inclusion.

Credit unions are legally built around something called a “common bond” – a shared connection between their members, such as where they live or work. But current legislation caps that bond at just three million potential members.

That means you cannot have a credit union that fully covers large communities like London, Scotland or the South West.

The common bond is central to what makes credit unions special. It roots them in community and helps them serve their members well. The principle is simple: people are more likely to trust and support those they share something with – their neighbours, colleagues, or fellow members of groups like churches and trade unions.

But the laws governing credit unions and common bonds haven’t kept up. The current cap is based on potential members, not actual ones. In reality, no credit union in Britain has ever come close to reaching it – yet the law still prevents them from serving whole cities and regions.

The Co-operative Party believes fairer finance is key to building a more equal economy. But for that to become a reality, credit unions need the ability to operate at scale and become an option for everyone, wherever they are and whatever community they belong to. That means increasing the cap on common bonds.

The Government has already said it is looking at reform, which means now is the time to make the case for change. Will you take action now, and add your name to our petition?