Welsh Government Invests Further £1.3m to Expand Access to Affordable Credit Across Wales

Thursday 17 April 2025

The Welsh Government has announced an additional £1.3 million investment to further expand access to affordable credit, bringing the total funding for its loan expansion scheme to £2.9 million.

Launched in 2022, the scheme has already supported over 4,000 individuals across Wales in accessing fair and ethical credit through credit unions — many of whom may have otherwise been excluded by mainstream lenders.

The increased investment aims to accelerate the growth and reach of credit unions in Wales as part of the Government’s wider ambition to build a financially inclusive nation. Credit unions are seen as a key part of this strategy, offering an ethical alternative to high-cost credit and payday lenders.

ABCUL welcomed the announcement and was recently present at the launch of a new mobile branch service, designed to bring face-to-face credit union services directly to communities. The mobile service marks a significant innovation in how credit unions can remain accessible in areas affected by the decline of traditional banking infrastructure. Read more about the mobile branch launch here.

This initiative comes on the heels of last month’s Banking in Welsh Communities event, hosted by the Welsh Government, which brought together credit unions, financial institutions and community groups to explore collaborative approaches to tackling financial exclusion.

Jane Hutt MS, Minister for Social Justice, said: “We are committed to building a Wales where everyone can access fair financial services, and as a government we’re using all our levers to help people in these uncertain times. This extra £1.3m for credit unions will provide ethical and affordable alternatives to high-cost credit that can trap people in a cycle of debt.

“We want a connected financial system that works for everyone. By supporting credit unions and bringing together partners across the financial sector, we’re taking practical steps to make this a reality for communities throughout Wales.”

ABCUL’s Head of Member Engagement, Debbie Smith-Hands said: “This continued investment by the Welsh Government is testament to the vital role credit unions play in promoting financial wellbeing, particularly for those most in need. We look forward to working with our members across Wales to ensure this funding has the greatest possible impact.”

The funding forms part of the Welsh Government’s wider financial inclusion agenda, with a focus on ensuring low-income households are not left behind in an evolving financial landscape.