5. Will the Minister provide an update on Welsh Government support for credit unions in Wales? OAQ54667

Credit unions provide access to affordable credit and promote a savings habit. They offer a fairer and ethical alternative to often exploitative high-cost credit. In support of their work, £544,000 is being provided to credit unions this financial year to take forward 20 projects that promote financial inclusion.

Thank you for that answer, Minister. You'll be aware that we're approaching a time of the year that can be a huge pressure on household budgets, and the pressure of advertising and wanting to buy the right thing can often lead to wrong decisions on spending and fuel the growth of personal debt, and unsustainable debt, actually. So, would you join me in thanking the credit unions across Wales, including the great work of Merthyr Tydfil Borough Credit Union and Smart Money Cymru Credit Union, which provide financial and loan services in my constituency, that can really help hard-pressed families to budget effectively, not just at Christmas, but all year round? And could you tell me what more can Welsh Government do to promote and encourage the use of credit unions?

I absolutely share the Member's concerns regarding the additional pressure and burden often felt and placed on families particularly at this time of year, and wanting to do the right thing, perhaps, by your family or your children—the additional pressures that that places, and it affects people's ability to pay essential household bills, including rent and mortgages.

Of course, I join with you in thanking the excellent work that credit unions in communities right across Wales do, including, obviously, Merthyr Tydfil credit union and Smart Money Cymru. And I'd like to place on record today my thanks for their commitment in all that they do in our communities. As you say, you need to think that credit unions are for everyone, and, as you say, they're particularly useful in the build-up to Christmas, enabling people to save towards Christmas, but I think we should really use the mantra that credit unions are not just for Christmas, they are for life. And I think Welsh Government has put in resources to promote the use of credit unions and I think perhaps there's more we can do in terms of working with Members in terms of how we can spread that message right across each and every one of our constituencies.

Minister, Newport Credit Union has pioneered a personal loan scheme to prevent more people from falling victim to high interest rate payday lenders. The family loan is an innovative scheme that allows members of a credit union to repay what they borrow directly from their benefits. Other credit unions in Wales are now following Newport's example. Minister, will you join me in congratulating Newport Credit Union on this scheme, and will you also commit to continuing to support credit unions in their work to prevent people from using payday lenders charging, in some cases, over 3,000 per cent more interest to some borrowers? Thank you.

I'm absolutely more than happy to join the Member in congratulating the work of Newport Credit Union in all they do, and as I said in my initial answer to Dawn Bowden, credit unions offer a much fairer, more ethical alternative to what are often very exploitative high-cost lenders who take advantage of people in communities right across Wales.

In terms of the services that Newport Credit Union offer, they offer excellent services, as do many other credit unions throughout Wales. I think one of the things the Welsh Government is 100 per cent committed to continuing to support is the excellent work that credit unions do. I think we need to be aware, actually, there is huge diversity amongst the 18 credit unions right across Wales, with the largest credit union in Wales being 42 times the size of the smallest, and some credit unions are, like some in my own consistency, entirely volunteer-run and focus on the provision of traditional savings, whereas, perhaps, larger credit unions are able to offer a much wider range of services. And, of course, we're happy to continue to work with credit unions across the country to see how they can build on the work that they do.