Kent Reliance has given a May Day welcome to the Treasury Select Committee's call for urgent changes to an "unfair" bank bailout scheme that is costing the society £4million.

MPs today called on the Financial Services Authority to take another look at the Financial Services Compensation Scheme that forces building societies to help failed banks.

In a report that also slated bankers for causing the financial crisis, the MPs claim building societies are having to inject inappropriate amounts into the fund which collects fees based on the value of each institution’s deposits.

Societies argue they are safer institutions than banks and have not indulged in the risky financial ventures that brought several banks like Bradford and Bingley, Northern Rock, HBOS and the Royal Bank of Scotland to the brink of collapse.

Mike Lazenby, chief executive of Chatham-based Kent Reliance, welcomed the MPs’ support, saying the building societies were having to pay a substantial part of their profits into the scheme and that reduced what was available to members.

"We paid about £1.2million this year and altogether we’re looking at about £4million over the next three years if no other bank goes bust," he said.

"It's so galling and unfair. We're competing with banks, some of which are very aggressive."

He added: "The building societies aren’t in trouble, they are just trying to create a fair method of providing safety for consumers while at the same time making sure they are not bailing out banks who got it wrong.

"We would prefer a scheme where building societies look after their own which they always have done."