Minister announces additional £600,000 of funding for credit unions

The Welsh Government has announced continued funding for credit unions to help expand their lending and support more financially vulnerable people.

The £600,000 of support will boost a cost-of-living intervention introduced last year which is providing assistance to people with poor credit histories who are struggling financially.

Credit unions are not-for-profit financial institutions owned by their members, and they have a proven track record of providing affordable and responsible lending to people who may be more financially vulnerable.

The Welsh Government’s funding will help credit unions to expand their lending and reach more people who need their services.

It will also be used help to improve the digital infrastructure of credit unions, making them more attractive to younger members.

Poverty

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.”

CEO of Smart Money Cymru Community Bank, Mark White, added: “The capital support from Welsh Government for investment in new IT has been a tremendous boost, which will allow Smart Money to grow and develop new affordable banking services.

“The additional funding to support our lending to those least able to access finance means we can target our loans at those who most need credit in these challenging times.”