Darlington Building Society is spearheading a new saving and loan scheme in an effort to help combat social exclusion.

The innovative Helping Hand Saving and Loan Scheme is a partnership between the building society, five local and national housing associations and The Housing Corporation.

Geraldine Wilcox of the housing associations said: "Helping Hand is a bold step towards financial inclusion for many housing association tenants, a number of whom only have experience of a cash culture.

"Community banking means that individuals with no credit history can establish themselves as savers and borrowers and at the same time benefit from an attractive rate of interest."

To get the scheme off to a flying start, Darlington Building Society is donating an extra £1 to the first 250 account holders opening accounts for £5 or more. Government Minister and Redcar MP Dr. Mo Mowlam helped launch the new scheme.

Peter Rowley, chief executive of Darlington Building Society, said: "Darlington Building Society is proud of its involvement in this community saving and loan scheme.

"Building societies were founded in part to combat financial exclusion and we continue to play a major role in its alleviation."

He added: "The Helping Hand Saving and Loan Scheme is steeped in the concept of mutuality. This community saving and loan facility is available through out extensive branch network incorporating 14 branches throughout the region."

Among those attending the formal launch of the new scheme were representatives from Endeavour Housing Association, Home Housing Association, the Guinness Trust, Places for People Group and Tees Valley Housing Group.

The event allowed represenatives to meet Dr Mowlam and show their support.