WIREDGOV

Over 2,500 people have joined Credit Unions in Wales following a marketing campaign led by the North Wales Credit Union this year. 

Communities and Tackling Poverty Minister Jeff Cuthbert welcomed the increase in the number of members who have gained access to sound advice and support on all financial matters, including affordable credit, debt and savings.

He thanked the North Wales Credit Union, who led on the all-Wales campaign, during a visit to their offices in Wrexham (28 Aug). The £679,000 campaign was part of a Welsh Government sustainability funding package awarded earlier this year to Credit Unions to increase membership of the 21 Credit Unions that serve people in all parts of Wales. The campaign ran from April to June.

Its target was, in the short term, that the campaign should result in an immediate 25% increase in the predicted growth acceleration in Credit Union membership for 2014, increasing Credit Union membership across Wales by 2,000. Figures so far for show that 2,504 new members have joined Credit Unions since the start of the campaign.

Minister Jeff Cuthbert said:

"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.

"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.

"I’m very pleased with the campaign that was led by North Wales Credit Union, who worked with other Credit Unions, and the rise in membership.

"Credit Unions are essential in providing people with local support and advice on all financial matters, including affordable credit, debt and savings.

"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 the 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."