Family Benefit Plan

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  • Loan Calculator
  • How To Apply
  • FAQ
  • Terms & Conditions

Our Credit Union Family Benefit Plan is a fantastic helping hand to make the most of your money

We know the cost of bringing up a family can really add up, and isn’t spread evenly across the year.  With this popular Plan you can borrow cheaply as well as save up for holidays, Christmas, school kit or other big spends as you repay.   Once we've approved your application, you simply arrange to pay your Child Benefit into your Membership Account, and you'll start to enjoy the benefits of being a Member.

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  • Easy to qualify – you don’t need a perfect credit history
  • You can apply immediately for a loan up to £1,000, subject to our affordability assessment.
  • Fixed interest rate – 3% per month on reducing balance (maximum 42.6% APR)
  • Your Child Benefit takes care of the repayments effortlessly, and lets you save up alongside as you wish
  • Spare funds can be transferred to your bank, same day for free
  • A much cheaper way to borrow than doorstep lenders
  • Free bereavement protection policy (see terms and conditions)

You can apply for our Family Benefit Plan online, at a branch or over the telephone. 



Complete our simple online application form.  For Loan Purpose, select 'Family Benefit Plan'.



Step 1: Provide proof of your income.  Non-members may also be asked for two or three acceptable items of identification.

Step 2: Complete the application form (mark your Child Benefit Reference Number on the front).



Speak to our friendly team on 01482 778753 - Option 2 (Mon-Fri 10 am to 4 pm).


All loans provided by HEY Credit Union are subject to our lending policy. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.

Who can apply for the Plan?

You must: a) be, or agree to become, a member of HEY Credit Union, b) be aged over 18, c) be registered on the voters roll, d) have your Child Benefit paid into your HEY Credit Union Membership Account until the end of the Plan.

How do I repay the Loan?

Your Loan will be repaid with your Child Benefit payments which will need to be paid into your HEY Credit Union Membership Account.

How much could the repayments be on a £500 loan?

Child Benefit Paid Repayment Term Interest APR Total Repayment
Weekly £12.00 per week 50 weeks £91.95 42.6% £591.95
4-Weekly £50.00 per 4-weekly 12 x 4-weekly installments £93.58 42.6% £593.58

How do I save with the Plan?

When your Child Benefit is paid into your HEY Credit Union account, your loan payments will be deducted and the remaining funds will be allocated into your savings, as you wish.  You can choose whether to have the savings into your Membership Account or Christmas Saver, or even have some transferred into a Junior Saver for your child(ren). 

How much might I save?

As well as repaying your loan, by depositing your Child Benefit with HEY Credit Union you will be able to build up your savings as you go.  See below how you much you could save over a year if you leave all your savings in your account.

Children Child Benefit By the end of your loan, you'll have a lump sum of:
1 £21.15 per week £465
2 £35.15 per week £1,165
3 £49.15 per week £1,865

Can I withdraw my savings?

Yes, you can withdraw your Child Benefit savings in line with our normal Terms & Conditions.  Funds can be transferred to your bank account the same day, free of charge.  .

Can I save separately to the Plan?

Yes. You can still save with additional monies and also open other HEY Credit Union savings accounts.

How can I apply for the Plan?

Simply apply online and select Family Benefit Plan as the Loan purpose.  Alternatively, complete a Credit Union Loan application form (marking your Child Benefit reference number on the front). If you apply in branch you may be asked to provide proof of your income (for example recent Universal Credit Award Notice, bank or Post Office statements showing your Child Benefit and any other income). If you’re not already a member, you may also be asked to provide at least two acceptable proofs of ID.

Do I need to be employed to apply for the Plan?

No, as long as you can provide proof of regular income as stated above.

Do you make a credit check and an affordability check?

Yes, as a responsible lender.   We aim to help as many members as we can but if you are in Bankruptcy, have a Debt Relief Order, IVA or Debt Management Plan, or CCJs in the past 6 months, then we would be unable to offer you a Loan.  

How long does it take to make process my loan?

Once your application is complete, we normally give a decision within 5 working days (it may take a little longer at busy times like Christmas and holidays). If your application is approved, we will contact you to arrange for your Child Benefit to come into your HEY Credit Union account, and when the first benefit payment hits your account we will issue your loan.  

How much can I borrow on the Plan?

You can apply for a Loan up to £1,000.  We will carefully assess your application to decide how much is affordable.

Do you offer joint Loan accounts?


How often must I make repayments?

Either weekly or 4-weekly depending how often you receive your Child Benefit.

How do I collect my Loan money?

We can transfer money to your bank account or, if arranged in advance, you may be able to collect cash from a branch. If you want to use your Loan money to pay any existing credit or bills, we can arrange to pay these for you.

What interest do I pay?

3% per month or 36% per year on the reducing balance (42.6% APR)  - Your interest rate can never be higher than this,, unlike doorstep lenders and other providers. That's the Credit Union difference.

How is interest applied?

It is applied to your Loan daily and calculated on the outstanding balance. This means that if you settle your Loan early you will pay less interest.

What term do I pay my Loan over?

Over one year. If your payments are maintained regularly you may apply to top up your loan when one third has been repaid.

Are there any penalties or hidden charges for clearing my Loan off early?


What happens if my Child Benefit stops or is no longer paid into the HEY Credit Union?

As you will still be liable to make your Loan repayments, you will need to select an alternative method of payment such as bank standing order or Direct Debit.

How can I check the balance of my loan and savings?

If you have registered for our Web App you’ll be able to check your account balances and make enquiries 24/7.

What if I cannot afford my repayments?

Contact our Member Solutions Team without delay to discuss a reduced payment plan. Failure to keep up repayments could have a serious effect on your credit report and ability to obtain future credit.

Updated 9.2.24

All loans provided by HEY Credit Union are subject to status and our lending policy. Applicants must be aged over 18. HEY Credit Union reserves the right to decline any application or offer a loan that differs from those advertised. To find out more about how we use your data to help us make decisions on loans please read our Privacy Policy.

When taking up a Family Benefit Plan with HEY Credit Union, the Borrower will sign a Loan Agreement which sets out the following terms and conditions:

1) The Borrower will repay the Loan that the Lender has advanced them, plus interest.

2) The Borrower will continue to make repayments until the Loan and any interest on the Loan due to the Lender have been repaid in full.

3) The Borrower has the right to settle the Loan early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the Agreement.

4) The Borrower agrees to inform the Lender immediately of any change to their financial circumstances which may affect their ability to repay the Loan or of any change in their address.

5) If the Borrower fails to pay any amount due to the Lender under the Loan Agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all of the balance of the Loan outstanding, together with any unpaid interest.

6) The Borrower agrees to be liable for all costs, charges or expenses of whatever nature of recovering any sums due under the Loan Agreement. See collection charges below*

7) The Borrower agrees that if they default on their repayments, information about their Loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that they are or will become entitled to.

8) The Borrower assigns to the Lender all paid shares held now or in the future in the Credit Union, as security for payment of the Loan and for interest or expenses which may be due and authorises the Lender to apply any or all such shares towards payment of the Loan, interest or expenses which are owed.

9) We, as the Lender, may use credit reference and fraud prevention agencies to help us make decisions. If you would like to read the full details of how your data may be used please see our Privacy Policy

Credit decisions and also the prevention of fraud and money laundering
We may use credit reference and fraud prevention agencies to help us make decisions. A short guide to how both we and the credit reference and fraud prevention agencies will use your information is detailed in the leaflet called: A condensed guide to the use of your personal information by HEYCU and at Credit Reference and Fraud Prevention Agencies. If you would like to read the full details of how your data may be used please visit or phone 01482 778753 or ask one of our staff. By confirming your agreement to proceed you are accepting that we may each use your information in this way.


Borrower - The member named on the Loan Agreement

Lender - HEY Credit Union

Loan - the sum that the Lender has advanced to the Borrower, plus interest

Shares - The amount in your savings account(s) with HEY Credit Union.

Collection charges* - As a not-for-profit member-owned organisation, in order to treat members fairly and offset the cost of administering loan recovery in an equitable manner, HEY Credit Union may apply charges as follows: First text- free of charge; Any subsequent text - 50p; First letter - free of charge, but indicating that any further letters will be charged at £5 each; Second letter - £5.00 but warning thatif no response is received, £30 will be charged should a further letter be sent; Third letter - £30.00; Any subsequent letter - £5.00 at our discretion; Tracing and Recovery costs and Court fees - charged at cost.




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© Hull & East Yorkshire Credit Union | Registered under the Credit Union Act 1979 and the Co-operative and Community Benefit Societies Act 2014. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Our FRN is 213620.