Actor Michael Sheen backs £1mil fair credit fund

Hollywood actor Michael Sheen has backed a new push to help Scotland's poorest people avoid “poverty premium'' when borrowing money.

He is supporting the launch of a new £1 million fund set up by the Carnegie UK Trust and features in a new short film called Speaking out for Fair Credit.

The cash will allow Scottish social enterprises to increase the availability of affordable loans to Scotland's poorest families.

An estimated 150,000 people in Scotland borrow £250 million from high cost lenders such as pay day loan firms and door step lenders annually

Mr Sheen, who is originally from Newport in Wales, has appeared in films such as Passengers, The Twilight Saga and Underworld.

He said: “High cost credit has for too long been targeted at those who can least afford it and those who are most vulnerable in our society.

“The need for ethical alternative providers is clear, whether they be on our local high streets or available online.

“But it's not just about creating more providers - we need to do more to enable them to compete with the high cost providers and to provide vital financial support to communities across the UK, putting people before profit.''

An estimated 530,000 people in Scotland live in severe poverty and get by on less than £240 per week.

The so-called “poverty premium'' means those who can least afford to borrow money usually pay the most to do so.

The Affordable Credit Loan Fund has been set up by the Carnegie UK Trust and Social Investment Scotland to also help more people access not-for-profit finance providers.

They will offer customers debt advice, savings opportunities and budgeting services.

Mr Sheen added: “I hope the new fund will enable ethical alternatives to increase their reach and impact with their lending and to be part of an increasing trend towards ethical lending in the UK.

“I fully support this campaign and will continue to collaborate on this mission in 2018.'