Merthyr Credit Union chosen for Welsh Government pilot scheme

Merthyr Tydfil Credit Union is pleased to announce that we have been chosen by Welsh Government to take part in an innovative pilot scheme to combat Council Tax arrears in the Borough of Merthyr Tydfil.

Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language said: "The scheme is designed for people in council tax arrears who are in financial hardship and who would otherwise be at risk of using either high-interest payday lenders or illegal money lenders to make ends meet. Under the scheme they will be offered bespoke assistance and affordable interest-free payment plans to help them to both repay the council tax debt and to begin to build savings at the same time. The Welsh Government will support credit unions to provide plans which will be available initially to tackle up to £2,000 of council tax arrears over a maximum pay-back period of two years. I anticipate the pilot phase will run until March 2026.  

Delyth Shearing, Chief Executive, Merthyr Tydfil Borough Credit Union said ‘We are pleased to be part of this pilot scheme, Credit Union’s support some of the most financially vulnerable in our communities and any additional support we can offer to help them manage their debts and reduce financial anxiety is welcome.

As the Cabinet Secretary said ‘Credit unions are ideally placed to work with people and families to help improve their financial resilience over the longer term, to help them improve their credit scores and to build savings while working to clear their council tax debt’ and we are looking forward to helping as many people in Merthyr Tydfil as possible in the coming months.’

The Council Tax Debt Rescue Scheme will start on 1^st May 2025, keep an eye on our website and social media for details of the scheme and how to apply if you or someone you know are struggling with council tax arrears.