Translate the text from English to Welsh.



 
This statement updates Members about the support we provide to credit unions.


Credit unions provide a lifeline to many households struggling to manage budgets during this cost\-of\-living crisis. As the crisis has intensified, significant numbers have joined credit unions looking for affordable credit.


We continue to work to raise the profile and awareness of credit unions as an ethical and responsible alternative source of lending. It’s vital that we get the message out that credit unions can support people who are struggling with the cost\-of\-living crisis. Importantly, credit unions are committed to promoting good financial habits, alongside providing savings and loans, offering assistance, advice and educational tools on budgeting and personal finance.


While some of their rates may be higher than the cheapest loans available from mainstream banks, they're much cheaper than other products available to people who may have been turned down for loans from high street banks, such as doorstep lending or payday loans, where APRs can be more than 1000%. There is also a cap on the amount of interest that credit unions can charge on their loans, with maximum rates capped at 3% per calendar month on the reducing balance.


Credit unions feature strongly in our efforts to tackle poverty and are a significant partner in our financial inclusion work. This is reflected in our continued financial support – we have provided £500,000 to grow their reach in communities across Wales this year.


We provided £1\.2m last year to give credit unions the confidence to expand their lending to people who have poor credit histories. This funding is being recycled into this financial year to support more people access affordable credit. To date, more than 2,000 people have accessed loans for the first time from a credit union, and this continues to grow.


With most people now sourcing finance online, it’s vital that credit unions take steps to fully digitise so they can reach as many potential members as possible. Credit unions have risen to this challenge and are matching the digital offerings of banks with £383,000 of Welsh Government support provided since 2021 to provide fintech advancements. Credit unions are also widening their reach by increasing their physical presence in communities, through hubs located in libraries, community centres and other settings across Wales.


Through the Responsible Lenders meetings I chair, I have asked advice services, housing providers and others to explore how they can work with local credit unions to best support the vulnerable clients they serve. This includes providing information on credit unions so people know their options for accessing responsible credit. I want these relationships to grow, with sectors working together, supporting people who are likely to continue to borrow to do so affordably and ensuring they are protected from illegal money lenders.


The ongoing cost\-of\-living crisis makes the role of credit unions more important than ever. We will continue to work in partnership with credit unions to strengthen their work and widen their reach to support people across Wales.


This statement is being issued during recess in order to keep members informed. Should members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so.







Translation:


 
Mae’r datganiad hwn yn rhoi’r newyddion diweddaraf i Aelodau am y cymorth sy’n cael ei roi gennym i undebau credyd.


Mae undebau credyd yn achubiaeth i lawer o aelwydydd sy’n ei chael hi’n anodd i reoli arian yn ystod yr argyfwng costau byw hwn. Wrth i’r argyfwng waethygu, mae nifer sylweddol wedi ymuno ag undebau credyd er mwyn chwilio am gredyd fforddiadwy.


Rydym yn parhau i weithio i godi proffil a chodi ymwybyddiaeth o undebau credyd fel ffynhonnell amgen o fenthyca, sy’n foesegol a chyfrifol. Mae’n hanfodol ein bod yn lledaenu’r neges ac yn dweud y gall undebau credyd gefnogi pobl sy’n teimlo’r esgid yn gwasgu oherwydd yr argyfwng costau byw. Yn bwysig iawn, mae undebau credyd wedi ymrwymo i hybu arferion ariannol da, ochr yn ochr â darparu cynilion a benthyciadau, gan gynnig cymorth, cyngor a deunyddiau addysgol ar drin arian a chyllid personol.


Er bod rhai o'u cyfraddau'n uwch na'r benthyciadau rhataf sydd ar gael gan fanciau prif ffrwd, maent yn llawer rhatach na'r cynhyrchion eraill sydd ar gael i'r rhai sydd fel arfer yn cael eu gwrthod ar gyfer benthyciadau gan fanciau'r stryd fawr, fel benthyca stepen drws neu fenthyciadau diwrnod cyflog, pan all y gyfanradd ganrannol flynyddol fod yn fwy na 1000%. Hefyd, mae cap ar faint o log y gall undebau credyd ei godi ar eu benthyciadau – gyda'r cyfraddau uchaf y gallant godi wedi ei gapio ar 3% y mis calendr ar y balans sy’n weddill.


Mae undebau credyd yn arf cryf yn ein hymdrechion i drechu tlodi, ac maent yn bartner allweddol yn ein gwaith cynhwysiant ariannol. Mae hyn wedi ei adlewyrchu yn ein cefnogaeth ariannol barhaus – rydym wedi darparu £500,000 er mwyn iddynt ehangu a chyrraedd mwy o bobl o fewn cymunedau ledled Cymru eleni.


Y llynedd, darparodd Llywodraeth Cymru £1\.2m i roi'r hyder i undebau credyd ehangu eu gwasanaethau benthyca i bobl sydd â hanes o gredyd gwael. Mae'r cyllid hwn yn cael ei ailgylchu i'r flwyddyn ariannol hon i gefnogi mwy o bobl i gael mynediad at gredyd fforddiadwy. Hyd yma mae mwy na 2000 o bobl wedi cael benthyciadau am y tro cyntaf gan undeb credyd, ac mae hyn yn parhau i dyfu.


Gyda'r rhan fwyaf o bobl bellach yn cyrchu cyllid ar\-lein, mae'n hanfodol bod undebau credyd yn cymryd camau i ddigideiddio'n llawn fel y gallant gyrraedd cymaint o ddarpar aelodau â phosibl. Mae undebau credyd wedi ymateb i'r her hon ac yn darparu cynigion digidol cyfatebol i’r banciau drwy ddefnyddio £383,000 o gymorth gan Lywodraeth Cymru ers 2021 i ddarparu datblygiadau technoleg ariannol. Mae undebau credyd hefyd yn cynyddu eu presenoldeb yn y gymuned, drwy ddefnyddio hybiau mewn llyfrgelloedd, canolfannau cymunedol a lleoliadau eraill ledled Cymru.


Yn y cyfarfodydd Benthycwyr Cyfrifol yr wyf yn eu cadeirio,rwyf wedi gofyn i wasanaethau cynghori, darparwyr tai ac eraill edrych ar sut y gallent gydweithio ag undebau credyd lleol i ganfod y ffordd orau posib o gefnogi’r cleientiaid bregus y maent yn eu gwasanaethu. Mae hyn yn cynnwys darparu gwybodaeth ar undebau credyd fel bod modd i bobl ddod i wybod am eu hopsiynau ar gyfer cael credyd mewn ffordd gyfrifol. Rwyf am i’r cysylltiadau hyn dyfu, gyda sectorau'n cydweithio i gefnogi pobl sy'n debygol o barhau i fenthyca i wneud hynny'n fforddiadwy, a sicrhau nad ydynt yn syrthio i ddwylo benthycwyr arian anghyfreithlon.


Mae’r argyfwng costau byw parhaus yn achosi i rôl undebau credyd fod cyn bwysiced ag erioed. Byddwn yn parhau i weithio mewn partneriaeth ag undebau credyd i gryfhau eu gwaith a rhoi cefnogaeth i fwy o bobl ar draws Cymru.


Mae’r datganiad hwn yn cael ei gyhoeddi yn ystod y toriad er mwyn rhoi gwybodaeth i Aelodau. Os bydd yr Aelodau am i mi wneud datganiad pellach neu ateb cwestiynau am hyn pan fydd y Senedd yn dychwelyd, byddwn yn fwy na pharod i wneud hynny.