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Credit Unions must grow for the future, says Minister

Modernising Credit Unions so they attract more working middle income earners and work more closely to offer financial products nationally will help make them fitter for the future, the Minister for Communities and Tackling Poverty Jeff Cuthbert said today. 

Credit Unions play a key part in the Welsh Government's plan to tackle poverty and help mitigate the impact of the UK Government's Welfare Reform by offering low cost loans to families across Wales.

Minister Jeff Cuthbert, speaking at a Welsh Credit Unions Conference in Cardiff, said:

"It's crucial that all people have ready access to sound advice and support on all financial matters, including affordable credit, debt and savings when they need it. Credit Unions are an essential piece of this jigsaw of local support.

"As the impact of the rollout of the UK Government's Universal Credit system impacts on families in Wales it is vital that Credit Unions support those who need to borrow money as they are a socially responsible lender. They are also part of the solution to tackling high interest payday and other lenders."

The Welsh Government has supported Credit Unions for a number of years, investing significant sums of money so they can support our most financially excluded members of society. In March this year the Minister announced £1.9 million of new funding until March 2017 to support expansion of the credit union movement grow, which included an advertising campaign to attract new members.

The Minister said that the impact of the recession, pay freezes and the imposition of the UK Government's unfair and ill conceived reform of welfare benefits were already hitting the most vulnerable people in society, whether they are in or out of work. Credit unions are key to helping to minimise the risks of spiralling debt for those worst affected.

The Minister added:

"The vision of Welsh Government is clear. We continue to support credit unions because of their strong social value and in the future, we want to see Credit Unions working together to develop a joint offer of products that could be made available nationally and would serve to strengthen the movement further."

Links

Credit unions

Channel website: http://gov.wales

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