County's struggling families urged to turn to credit union
STRUGGLING families hit by impending changes to the benefits system will be urged to put their money into a jam-jar.
Neath Port Talbot has one of the highest claimant rates in the country and is expected to be particularly hard hit by the Government's welfare reforms.
Council deputy leader Peter Rees has even warned it could send the country back to the dark days of soup kitchens.
The authority is now working with various organisations in the country to try to soften the blow.
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One of them is Neath Port Talbot Credit Union, a community-based financial cooperative which, with more than 6,000 members, is now one of the biggest in Wales.
"Overall the changes to the benefits system are going to be horrendous," said development team leader Brian Warlow.
"We have an extremely high dependency on benefits in Neath Port Talbot, having lost the heavy industries that people relied on.
"It's all very well talking about trying to get a job. If you're living at the top of the Afan Valley how are you going to get to Amazon to start at six in the morning?"
One in four people in Neath Port Talbot receives at least one form of benefit. Many of them will see those benefits reduced or possibly stopped altogether because of the reforms.
The credit union is looking at a range of measures to help them. One is a new service, a budget account nicknamed a jam-jar account, ready for the introduction of the Universal Credit from next October.
This will replace several benefits for working-age people and lead to a single payment of up to £500 a week for each household.
But there are fears people will struggle to manage their budget as it will be paid monthly.
Tenants of social and private landlords can opt to have their money paid directly to a Neath Port Talbot Credit Union account.
"The first thing we will do is pay their housing provider so they have a roof over their heads," said Mr Warlow.
"We will then pay essential standing orders such as gas and electricity.
"What is left over will then be put onto a pre-loaded debit card, which means people in this area can do what many take for granted, such as shopping for bargains on Amazon and eBay."
Mr Warlow said that, if people still struggled to manage their money over a month, the credit union would pre-load the debit card on a weekly basis.
He said anyone who had concerns could contact the credit union for advice.
It has offices in Neath and Port Talbot town centres as well as in Taibach, drop-off points around the county including schools.
"Unfortunately there is a small group of people we cannot help because they do not want to be helped," he added.
"But if people do want our help we are there for them."
paul.lewis@swwmedia.co.uk
01792 514694
Comments
by seasolder
Tuesday, September 18 2012, 8:19PM
“Our country is and has been badly let down by a series of goverments, who basically do not know how to goven----People need finances to live, these finances are then recirculated which help to keep people in employment and produce a production line
Unfortunately our govenments have closed so many of our industries, resulting in mass unemployment, with communities having been affected and have not replaced these industries with satisfactory or sufficent alternatives. Examples-- The coal mining community ------ Steel works at, Gorseinon----Velindra etc How many of us can remember the many engieering companies around the Swansea area which are no longer around.
Now the government is blaming the unemployed for being on benefits when it was the government who cause this situation in the first place.
Our generation need worthwhile employment, which our youngsters can learn from and have an opportunity to receive a good apprenticeship”
by williamwaun
Tuesday, September 18 2012, 6:50PM
“That's true the insurance for young drivers is way too high, it was the same when I was younger. It's very hard for the younger generation to get work up in the valleys, under the last Labour government, most of the factories closed down in the Llynfi valeys e.g Revlon and silent channel.
The assembly should provide a bus service that starts earlier in the mornings and late into the night.
There are other options, but like I said there are many who would rather not look for work. I'm sure they will find a way to travel to Port Talbot to sign on every other week.”
by Neathboy234
Tuesday, September 18 2012, 6:00PM
“Lets be honest, most husbands and wives bring in far more than £500/week. These days the average mortgage would eat up half that straight away”
by Jiffy
Tuesday, September 18 2012, 5:33PM
“williamwaun - claims to 'see' all kinds of skullduggery, yet hasn't got the slightest clue about the problems young people have with transport. What's the point in having a driving licence, when the insurance for a small car can cost well over £1,000. Throw in the cost of a car & tax, he's expecting kids to find over £3,000 before they even start a job.”
by williamwaun
Tuesday, September 18 2012, 5:14PM
“Don't get me wrong I am all for benefits, but to the right people e.g genuine disabled and old age. There are a great amount of people from the valleys who have never worked and will never work. They parents have done it and they know no different, there are single parents who get everything paid for them, believe me it happens and I see it every day. These people ruin it for the genuine ones. What about the young people who go out and learn to drive who travel to Amazon. What the government should do is give vouchers out so people can afford driving lessons and get themselves out to work. It must be terrible thinking people have never wanted to work and who will never have the opportunity. I feel very sad for them.”
by sueswansea
Tuesday, September 18 2012, 5:11PM
“Wow £500 a week. I think its time for me to give up work and move to Neath.”
by Neathboy234
Tuesday, September 18 2012, 4:01PM
“AndyJenkins84 Great news, glad to see the CU helping people out.”
by AndyJenkins84
Tuesday, September 18 2012, 3:22PM
“Neathboy234, previously the CU offered a dividend to savers but because of changes in legislation they can now offer a rate of interest.”
by Neathboy234
Tuesday, September 18 2012, 2:00PM
“I'm sure Council deputy leader Peter Rees will correct me if i am wrong, but isn't it correct that this CU doesn't pay any interest on money saved.”
by AndyJenkins84
Tuesday, September 18 2012, 1:43PM
“I'm a member of the NPT Credit Union and am really pleased to see it not only doing well, but trying to come up with ways of helping local people. Local and helpful - now that's proper banking!
I am wondering though, legislative changes mean that credit unions can now make business loans - is this someting the NPT CU will consider doing in the future? It would be great for the local economy!”