A Government minister was due to visit Leicester today to unveil a plan to give £73 million to credit unions.

The fund will help the financial co-operatives grow and modernise, Secretary of State for Work and Pensions Iain Duncan Smith was expected to tell staff and members at Clockwise Credit Union.

Clockwise staff said they were delighted their new offices, in St Nicholas Circle, had been chosen as the location for the announcement.

They said the Government cash would help credit unions continue to support some of the most vulnerable members of society.

Speaking ahead of his visit, Mr Duncan Smith said: "Credit Unions have helped hundreds of thousands of people stay out of unmanageable and crippling debt by giving them access to sensible financial services."

He said the £73 million was needed so credit unions could expand and "reduce costs to achieve financial stability".

He said: "Debt is a driver of poverty, so we want to ensure credit unions continue to provide access to the financial products and services that people on lower incomes need, offering an alternative to unscrupulous loan sharks.

"We know that the best route out of poverty is work – that's why our welfare reforms will make work pay for everyone, through the Universal Credit and our work programme will give people the personalised support they need to get a job."

Credit unions are non profit-making organisations which offer responsible alternatives to high-interest lenders.

Since opening in 2002, Clockwise has gained 6,000 members across Leicestershire and Rutland, who collectively have more than £2 million in savings.

It has lent £3 million in sums as small as £250.

Teresa Manning, Clockwise operations manager, said : "We are delighted and honoured by Iain Duncan Smith's visit to the newly opened Leicester office of Clockwise Credit Union.

"We feel it is a recognition of the success we have achieved in addressing financial exclusion in Leicestershire and Rutland.

"This new funding will ensure that we and other credit unions can continue into the future to provide affordable loans so that those most vulnerable are not forced to turn to high-cost lenders.

"This means money back in their pockets – money then spent in our communities.

"The new funding is a strong endorsement of the Government's belief that credit unions can and are having a significant impact in addressing financial exclusion."

Mr Duncan Smith will also visit the British Gas Energy Academy, in Aylestone Road, Leicester, to meet apprentices.

Francis Maude, minister for the Cabinet Office, was also due to be in the city centre today, visiting Inclusion Healthcare, which helps homeless people at the Dawn Centre, in Conduit Street.

Chris Huhne, the Secretary of State for Energy and Climate Change, is due to be at clean power firm Intelligent Energy, in Holywell Park, Loughborough.