As families across Greater Manchester prepare for back-to-school, research from Manchester Credit Union (MCU) reveals the financial and emotional strain parents are under.
The survey[1] found that most parents feel stressed, anxious or worried about the cost of back-to-school essentials such as uniforms, shoes and supplies.
More than four in five respondents admitted they’ve cut back on other household costs – including family activities, bills and even meals to afford school expenses.
The findings highlight the real pressures facing families at the start of the academic year and underline the need for affordable financial support.
Ryan Young, chief financial officer at Manchester Credit Union, said: “Our members tell us that back-to-school is a real time of anxiety and sacrifice, made even harder by the fact that many have already struggled with covering the cost of the long summer holiday too.
“We know that more than a quarter[2] of our members struggle with money all the time, which means this time of year puts an even greater strain on already stretched finances. Skipping meals and putting off paying bills shows how finances can spiral out of control and just how damaging financial challenges can be to people’s mental health and wellbeing.”
Manchester Credit Union has 30,000 members across Greater Manchester and is focused on helping the region’s lowest-income families improve their financial resilience with affordable financial services, including loans and savings. Its innovative approach to lending helps to tackle the threat of high-cost credit and loan sharks by asking members to save as they borrow. This means members accrue a savings pot throughout their loan term and create a financial safety net many have never had before.
Ryan continued: “Most of our members are in the lowest-income families in the region, and even though many have a small amount of savings, there are still lots without a financial safety net. As a community-focused cooperative, we know the only way to help families manage essential costs is tomake use of the free help available and affordable lenders like credit unions.
“We’d encourage any family that’s really struggling with costs to come and talk to us, with our help, next year won’t be so hard.”
Over the last 12 months[3], MCU has lent £10.7m and has approved 28,563 loans for 15,166 of its 30,000 members. In total, members have saved £8.3m by borrowing from the credit union rather than high-cost lenders[4].
As part of its commitment to building financial resilience across Greater Manchester, Manchester Credit Union runs a school programme to help children foster a better relationship with money. To date, more than 250 primary school children have participated in MCU’s ‘Bee Smart with Money’ roadshow, which uses well-known fairytale characters to deliver some powerful messages about money.
Manchester Credit Union is a not-for-profit organisation that exists solely for the benefit of its members in Manchester, Bury, Rochdale, Stockport, Tameside, Trafford, and High Peak. Any profit generated is returned as a dividend on savings or used to improve member services.
[1] Data collected from an in-app survey of MCU members during July 2025 based on a sample of 516.
[2] 27.6% – Data collected as part of MCU’s annual members’ survey 2025.
[3] Based on Manchester Credit Union’s in-house data for the period June 2024 to June 2025
[4] Calculated by subtracting the actual interest of each loan with MCU from the equivalent interest cost from a typical subprime (high cost) lender charging 144% annual interest.
