SMC chosen for Welsh Government pilot scheme

Smart Money Cymru is excited 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 Blaenau Gwent and Newport counties.

Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language said today- 

"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.  

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. They are regulated by the Financial Conduct Authority to provide bespoke affordability assessments, which consider personal circumstances in a tailored way, and they will be able to assess people’s suitability for an interest-free payment plan while managing their current and future housing costs".

The Council Tax Debt Rescue Scheme will be live from May 1st, so check back to find out more soon.