Credit unions in Wales have launched a new payroll loan and savings program available to thousands of employees.
Leveraging the reserves of 10 credit unions to provide loans to employees, who can also save, the Moneyworks Wales initiative has already signed more than 150 companies, including Legal & General, Admiral and Airbus.
The project, supported by the TUC and the Welsh government, will also use employee savings deposits to provide loans. The only condition is that the employees are based in Wales.
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As with taxation, loan repayments and savings are taken directly from an employee’s pay before it reaches their bank account.
Claire Savage, Policy Officer at Credit Unions of Wales, said: “There has never been a more important time for companies to support their employees with their finances.
“For many, the pandemic resulted in a significant currency shock and underscored the importance of having a financial safety net. By equipping employees with the tools to become financially resilient, whether through access to fair and ethical loans or a hassle-free savings product, employers are also creating a happier and happier workforce. productive.
“We are delighted to offer Moneyworks to employers and employees in Wales. We have already received great feedback from our current partners and look forward to rolling out the product to more businesses large and small across Wales, helping their employees put their money to work. for them.
Jane Hutt, Minister for Social Justice, said: “The continued development of a strong credit union movement will provide access to fair, responsible and affordable credit for all across Wales.
“Many of us will need support at some point in our lives and the Moneyworks Wales payroll product will provide employees with the help they need to make their money work for them and become more financially resilient, while slowly creating a buffer. ‘saving. I strongly encourage employers to work with their local credit union to better support their staff financially, and beyond. “
The program can provide loans ranging from £ 100 to £ 15,000. Savings of up to £ 85,000 are protected by the Financial Services Compensation Scheme
Shavanah Taj, Wales TUC general secretary, said: “Workers in Wales continue to face massive uncertainty as the economy recovers from Covid. So it’s more important than ever to be able to easily save money on every payday and establish some degree of financial security.
“Moneyworks is a win-win solution for employers and workers. Payroll savings programs like these have proven to be an effective and easy way for employers to support their workers and there are already great examples supported by unions across Wales. Developing this network further can help give workers a greater sense of control over their finances. “
Lynne Sheehy, Head of Corporate Social Responsibility, Legal & General said: “The launch of Moneyworks Wales couldn’t have been better for Welsh workers, supporting regular savings and access to affordable credit as a advantage of employment.