The Manx Credit Union is advising people to start saving as energy bills continue to rise in the island during the cost of living crisis.

With recent announcements about gas price increases, meaning that they will have risen by 192% in 12 months, many are expecting to struggle with covering the cost of utilities.

Chair of the MCU David Talbot said: ‘While we’ve not had a flood of people [asking for help] yet, we are expecting that to happen in the autumn as people start to get their bills.’

A credit union is a not-for-profit savings and loans service, which does not give interest but instead provides dividends to its members made up of any surplus profit that come after paying running costs and investing into the union.

They offer loans to their members based on their ability to afford the repayments and have a focus on encouraging ‘good savings habits.’

Mr Talbot says: ‘We don’t police our personal loans, the whole thing about the Manx Credit Union is it’s relational and about trust and getting to know our members.’

One change the credit union has made to help with saving for bills is to add an ‘energy fund’ budget account option alongside the existing Christmas, holiday and children accounts, this helps people to choose specific targets to save for and put aside set amounts towards them.

Mr Talbot says that although many people are struggling to even have any money to put into savings right now, there are often steps you can take.

He said: ‘Basically the message is, consume less and save more. Have a good look at what you’re spending your money on and say is this absolutely essential or should I actually put this money by in the credit union and then after a month or so go and see if I’m in a position to borrow a starter loan.’

The credit union’s starter loans begin at £500 and Mr Talbot explained that applicants are often looked favourably on, but if it is decided that an applicant would not be able to afford the repayments, they will still provide a plan on how to improve their situation.

The MCU can be found online but also welcome anyone to drop in to its new premises at Ragland House on Peel Road during opening hours on Tuesday and Saturday mornings or Thursday evenings.