Parents struggling to afford school uniforms could receive a helping hand if plans for Kingston’s first credit union are approved.

A group of volunteers operating under the name Kingston Savers hopes to give people who cannot get loans from banks an alternative to loan sharks who charge outrageous interest rates.

The organisation, supported by Kingston Voluntary Action (KVA), wants to extend Surrey’s newly-formed credit union Surrey Save to the royal borough.

KVA chief executive Hilary Garner said: “Credit unions exist to help their members help themselves, encouraging them to develop prudent financial habits and understand the true cost of credit.

“Whenever possible, they assist those who struggle to make ends meet, helping them up the ladder to financial health.”

KVA has earmarked £50,000 of a £252,000 grant given by the council last November to help develop the scheme.

Councillor Rolson Davies, executive member for finance, said a credit union could help people who had lost their jobs, those struggling to pay unexpected bills, or new parents needing baby equipment.

The plan needs approval from regulatory body the Financial Services Authority, which needs proof there is local demand for the service.

Kingston Savers is now appealing for residents to pledge their support for the body.

The proposal has attracted support from across the political spectrum.

Kingston and Surbiton MP Edward Davey said: “This is hugely exciting and should bring affordable help to people struggling with their finances.

“The Government is trying to develop the credit union sector, not least to act as non-profit competition to the high-cost lenders, so it is welcome to see this initiative.

“It has my full support and I hope many people will take part.”

Visit kingstonsavers.org.uk for information about how to pledge your support.