£600,000 Funding Available for Welsh Credit Unions

Friday 26 January 2024

£600,000 of funding has been announced to help credit unions provide ethical and affordable lending during the cost-of-living crisis ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​ ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

The Welsh government funding will boost a cost-of-living intervention introduced last year, which is providing assistance to people with poor credit histories who are struggling financially. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​ ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

The funding is one of a number of ways the Welsh Government is supporting people through the cost-of-living crisis by providing targeted help to those who need it the most. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​ ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

The Minister’s visit follows an additional £121,033 in capital support for Smart Money Cymru Community Bank and Merthyr Tydfil Borough Credit Union to assist with the cost of necessary updates to IT infrastructures, bringing them in line with high street banks. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​ ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Visiting Smart Money Cymru Community Bank in Caerphilly, Minister for Social Justice, Jane Hutt said: “Welsh credit unions work incredibly hard in support of our journey to promote social justice and tackle poverty across Wales.

“Their services have been – and will continue to be – vital to people suffering financial difficulties during this unprecedented cost of living crisis. I’d like to thank them for their commitment to providing access to fair and affordable credit.

“I would urge those struggling who may be at risk from high interest doorstep lenders or loan sharks to instead turn to their local credit union, which can provide access to fair and affordable credit.”

Delyth Shearing, Manager of Merthyr Tydfil Credit Union said: “The additional capital funding received from Welsh Government has been an incredible boost to Merthyr Tydfil Credit Union, allowing us to upgrade our IT infrastructure, meaning that we can reach more people who are unable to access ethical, affordable loans, especially during what is a very difficult time financially for everyone.”