Additional finding to strengthen credit unions has been announced by the Welsh Government.

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 during challenging times.

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

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.

One of the credit unions benefiting from the investment is Smart Money Cymru, which operated across the Caerphilly, Blaenau Gwent and Newport areas.

The Welsh Government has also invested £637,000 in digital improvements for credit unions, ensuring they can offer online services comparable to those provided by banks. This means that people across Wales have flexible, easy access to financial support when they need it most.