Oldham's ‘Fair Debt Policy' shapes the way our officers work with people who are in debt to the council, ensuring they receive a caring and supportive service when they contact us.

Raising awareness of how residents can avoid debt now starts from a young age. Oldham Youth Council, as members of our Co-operative Commission, have partnered with Barclays Bank on a ‘Money Skills Champion' programme.

It teaches young people how to manage money and develops financial skills for the future. Maximum impact is ensured by those who are trained then sharing their learning with other young people.

Oldham Credit Union (OCU), run for and by residents, offers an ethical alternative to doorstep lending.

Set up in partnership with the council and housing providers, OCU's ‘Jam Jar' account helps people to budget for essential bills. Income goes into the account and amounts for bills such as rent and council tax are ring fenced and paid out to the landlord and the council.

The council supports and promotes OCU, which fosters a savings habit and gives access to loans at fair rates.

We run joint campaigns with the OCU and partners such as housing providers and voluntary organisations. We have also had a very successful joint campaign with the National Illegal Money Laundering team, targeting loan sharks.

It is how we combine all of these elements together that is fundamental to our support to residents. Oldham is making great progress as a Co-operative Council – redefining the relationship between authority and residents ‘Problem' personal debt is on the increase and it especially affects our most vulnerable and less affluent residents.

People are facing tough financial challenges, including uncertain employment, changes to benefits, benefits sanctions and the increased cost of living. For many, the only way they can see to make ends meet is to borrow from payday lenders or loan sharks and more often than not this just makes matters worse.

For some, money problems can become overwhelming, and the damage is not limited to just their bank account or credit rating. Spiralling debt affects the whole family and can potentially impact on the wider community and the local economy.

Money being paid back to loan sharks at exorbitant rates is money that never makes its way into the local shops and businesses.

That is why we believe that the council has a significant role to play in helping residents avoid debt, and supporting those who find themselves in dire financial straits.

In Oldham we have long taken a proactive attitude to this issue – putting residents' needs and concerns at the centre of our approach - and they are feeling the benefit.