Demise of Essex Savers credit union

This week Essex Savers went into voluntary liquidation.  All savings are protected and will be paid back within seven days,

I have known for some time that Essex Savers was short of  operating funds.  I have no knowledge of the size of the shortfall.  The social cost of liquidation will be enormous as disadvantaged people will go to lenders who charge astronomical interest rates.

In Kent, the county council was the major player in the development and funding of the credit union - up to £500,000.  In Essex the county council did not contribute a penny.  Surely it was not beyond the wit of various councils and housing associations to come up with interest free loans or other mechanisms to support the credit union?  The cost to these bodies of the loss of the credit union will outweigh the cost of rescue as pressure will mount on social services, social security and housing.