Thousands of people could be helped with low-cost credit as an alternative to loan sharks.

About 3,500 people are already members of ethical lender East Sussex Credit Union – the largest of its kind in the country.

However, many more at risk of high-interest loans and illegal loan sharks could be helped, according to Brighton and Hove City Council.

A reception was held last week to promote the credit union’s offer of low-cost credit to those who need it most.

The event was organised jointly by the council, the credit union and the office of the Bishop of Horsham, the Right Reverend Mark Sowerby – who was a keynote speaker at the event.

The council is investing £90,000 a year over the next two years in the credit union as part of its strategy for tacking inequality in the city and helping vulnerable people.

Credit unions offer valuable support to people who are struggling financially, many of whom have no easy access to bank accounts or low-cost credit.

They are an alternative to high-cost lenders who charge exorbitant rates of interest and who often have very restrictive terms and conditions.

Because they are not-for-profit organisations, credit unions can offer affordable loans, as well as advice, guidance and financial education.

A number of local businesses have also signed up to the credit union’s payroll deduction scheme as a benefit for their staff, including the council.

The council’s lead member for communities and equalities, councillor Bill Randall, said: “More and more people are suffering with spiralling debt with no access to mainstream credit and banking services.

“I believe the East Sussex Credit Union could potentially help thousands more local people. We want to spread the word that in this city there is an affordable and ethical local alternative to loan sharks.”

Residents who wish to join the credit union at the event itself need to bring proof of ID, such as a driving licence or work ID card, and proof of address.

Visit www.eastsussexcu.org.uk for more information.