Funding Granted to Credit Union Sector in Wales to Support Families Over Christmas

Friday 22 November 2024

In the run up to Christmas, the Welsh Government is providing an additional £408,719 to credit unions, which offer a safety net for individuals and families who need access to fair and affordable lending.

By increasing the funding for the nine credit unions operating in all parts of Wales, the Welsh Government is making these services more accessible.

“We welcome the Welsh Government’s commitment to strengthening credit unions through this additional funding,” says ABCUL CEO, Robert Kelly. “This investment will enable us to expand our reach, support more communities, and provide vital financial services to those who need them most. Credit unions play a crucial role in promoting financial inclusion, and this funding will empower us to make an even greater impact across Wales.”

Cabinet secretary for Social Justice Jane Hutt said: “Life can be unpredictable, and people shouldn’t have to worry about where they can turn if an emergency arises.

“Christmas can be an especially costly time, and I would encourage those struggling with their finances, who may be at risk from high-interest doorstep lenders or loan sharks, to instead consider their local credit union, which can provide access to fair and affordable credit.

“This additional funding will strengthen the support credit unions offer in communities across Wales, helping people not only manage today but also build financial resilience for the future.”

Since 2022, the Welsh Government has committed £1.2 million to credit unions to expand their lending by offering new ‘starter’ loans and ‘credit builder’ loans, helping more than 3,600 people access affordable loans for the first time. This latest funding will further expand credit union services, providing valuable support for both new and returning members throughout the winter.