The Welsh government has announced an additional £1.3m to expand affordable credit options, helping thousands more people across Wales access fair financial services.
This new funding builds on the loan expansion scheme established in 2022, bringing the total investment to £2.9m. The scheme has already helped over 4,000 people access affordable credit who might otherwise have been turned away by mainstream lenders, say ministers.
The goal is to boost credit union growth in Wales, alongside initiatives like Celtic Credit Union’s new mobile branch service. Established in Neath, Celtic has expanded its reach in recent years and the mobile service will bring face-to-face financial services directly to communities across Neath Port Talbot and Swansea.,
Celtic’s business development manager, Julie Mallinson, said: “Following changes in the landscape of our high streets, we hope that this additional service will provide an innovative solution to maintaining a physical presence in our communities.
“Thanks to funding from the Welsh government we can continue to support access to our services for those living in the Neath Port Talbot and Swansea areas, including those who cannot or chose not to engage digitally. This is especially valuable during the current economic situation, allowing us to promote ethical, affordable lending options for people facing unmanageable debt.
“To be able to launch this service in our 20th anniversary year is an added bonus and we hope it will help us to continue our steady, sustainable growth and enable us to encourage more people to join us.”
The investment is part of Welsh government’s stated broader strategy to create a financially inclusive Wales, particularly supporting low-income households often excluded from mainstream banking.
It follows last month’s Banking in Welsh Communities event, where the Welsh government brought together financial institutions and community organisations to develop solutions for financially excluded people.
Social justice secretary Jane Hut (pictured) 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.”
