Straight talking politics beats straight talking money

Last week George Osborne did something many would say politicians rarely do. He admitted his Government got something wrong. In announcing plans to cap the cost of credit he accepted the something that all campaigners involved in the Sharkstoppers campaign know; that lenders being able to charge cash strapped borrowers sky high rates of interest which mean they end up even more in debt isn’t good for anyone – except the shareholders of these legal loan sharks.

Just two months ago Osborne scorned Ed Miliband when he pledged to take on companies like this as part of addressing the cost of living crisis now facing many in Britain. But whilst it may have come as a surprise to his Cabinet colleagues, his change of heart has its roots in both work done in the hallowed halls of parliament and grassroots organising in communities around Britain. Too often in politics there is a presumption that one is separate to the other yet in this instance  the effectiveness of one cannot be understood without the other. The work of Movement for Change on the Sharkstoppers campaign to help develop and sustain this grassroots activism was integral to the strength of the case for change made in Westminster.

What started in Walthamstow has, over the past two years, grown into a nationwide campaign as Movement for Change have helped bring campaigners and organisations together to mobilise around this issue. People have joined in from Edinburgh to Southampton, the Medway Towns, Brent, Stockport and beyond. Each of these groups of activists worked to find the way to challenge legal loan sharks, bringing their imagination and local knowledge to tackling their toxic effect on their local communities. In Newcastle, following the Wonga NUFC sponsorship deal, activists came together to help recapitalise the credit union so it could double the number of payday loans it offers. In Swansea, young mums who have been dragged into debt by payday lenders have negotiated with a major regional paper to secure free advertising and feature pieces for the credit union, as well as excellent work by groups in Southampton, Cumbria and in local communities and councils across Britain.

With the support of Movement for Change campaigners like Steve in Dartford and Serai in Swansea, who suffered at the sharp end of the payday loan industry, found their voices and become amazing advocates who took their experiences direct to Ed Miliband.

The Sharkstoppers campaign also found voices in national Parliaments, and doing so securing powers for the regulator to intervene to protect consumers, including the possibility of caps – and this announcement represents the latest success. In Edinburgh, Movement for Change Chair Kezia Dugdale MSP announced the latest Debtbusters campaign achievement: the Scottish Government has agreed to issue wealth warnings to warn people on the dangers of high cost credit. In the best traditions of progressive politics a wide civil society network has been built to work collectively for common cause.

Ed Miliband has confirmed Labour would stop payday lenders targeting young children with their adverts, put a levy on their profits to pay for an expansion of credit unions and introduce real time credit checking to hold them accountable for selling loans to borrowers who don’t have the means to repay them. And having seen individuals, who had felt angry but powerless to act on an issue, build lasting relationships and effective campaigns through the training, development and support of Movement for Change, I know that there are many more victories to come for activists up and down the country. Indeed, the Labour Party might be out of office, but, when we work together in this way, it becomes clear the Labour Movement certainly isn’t out of power.

Stella Creasy is Shadow Minister for Competition and Consumer affairs