Phil Nash, Chief Sales Officer at Shepherds Friendly, says mutual societies have stood the test of time because their ethos remains consistent with their origins – their members come first and always will.
Resilience is about standing strong across generations and adapting while staying true to core values. Few financial institutions embody this better than mutual societies, which have safeguarded people’s financial wellbeing for centuries.
The history of mutual societies in the UK
Imagine a world before the safety nets of modern society – with no state provision during difficult times. What did people do? They turned to mutual societies for support.
Back in the 18th and 19th centuries, as the industrial revolution reshaped communities, life was tough. If you got sick or lost your job, there was no government support and life without a regular income meant people would have to beg on the streets or live in the poorhouse.
So, mutual aid organisations known as mutual societies were created to provide protection for families in times of hardship. These locally based groups were usually comprised of a few villagers or neighbours. Mutual societies were the original social network, but instead of apps, the meetings were held as gatherings where members would pay their subscriptions.
Member’s monthly contributions were pooled so they could receive a lump sum payment when they needed it the most. Pay-out conditions could be in many forms such as the cost of a funeral, regular sickness payments or an old age pension. Even livestock losses were accounted for – so if your cow keeled over, at least your finances wouldn’t.
By the late 1800s, mutuals were thriving, with nearly 27,000 societies across the UK. They were the unsung heroes, keeping families afloat with insurance, benefits, and pensions. When the welfare state was introduced in the mid-20th century, membership declined, but mutuals never disappeared.
Fast forward to today, and mutuals are here to stay – around 200 remain, offering fair, clear financial products that help members plan their finances and secure their futures.
From 1826 to today: The story of Shepherds Friendly
Shepherds Friendly began as a sickness and benefits society called Ashton Unity, founded in Ashton-under-Lyne on Christmas Day in 1826.
Later, we adopted the name Loyal Order of Ancient Shepherds—”Loyal” signifying allegiance to the Crown and “Shepherds” symbolising the Nativity of Jesus. Catchy, isn’t it?
The Society’s mission was clear: “to relieve the sick, bury the dead, and assist each other in all cases of unavoidable distress, so far as in our power lies, and for the promotion of peace and goodwill towards the human race.”
Over time, we merged with similar mutual associations, including the Royal Shepherds Sanctuary Benefit Society, which originated in Yorkshire in the early 19th century. As we expanded nationwide, we established local branches known as ‘lodges’.
Our founders believed in creating a self-sustaining, member-owned society that would provide financial support during illness or injury. They took full responsibility for managing the society, ensuring it remained a dependable source of aid for its members. This principle of mutual support remains the foundation of our organisation and many others across the UK.
Today, as a modern mutual we continue to put the wellbeing of our members first in everything we do.
Why mutuals matter more than ever
Mutuals are people-first. They exist to make a positive difference to their members, not to chase profits. And honestly, isn’t that refreshing?
History has shown that mutual societies endure because their core values remain unchanged: empowering people to take control of their finances within an organisation that’s run for and owned by its members. While the world has evolved dramatically since the 1800s, mutuals have continuously adapted to meet the needs of modern society.
So next time you think about financial security, remember mutual societies were built on trust, community, and the simple idea that we’re stronger together. And in today’s world, that’s more relevant than ever.
