Payroll benefit for all of Wales Moneyworks Wales is reporting an increase in the number of employers seeking to join its payroll savings and loan schemes as organizations prioritize the financial wellbeing of staff.
Moneyworks Wales, which launched in September, offers staff the option of saving or borrowing by making payments directly from their pay.
With around 150 Welsh employers now enrolled in the scheme, Claire Savage of Moneyworks Wales paid tribute to their commitment to financial wellbeing. She says,
Over the past few months, employers of all sizes have contacted Moneyworks Wales and they all have similar concerns about how staff will cope with the cost of living crisis.
The Covid 19 pandemic, followed by escalating fuel bills and inflation, means financial wellness programs have never been more important.
Moneyworks Wales is free to employer and the program is used across all sizes of organisations, with savings and loan services provided by non-profit credit unions.
One of the latest organizations to join the scheme is Archwood, based in Chirk, near Wrexham. Archwood MD Josh Burridge, explained why they chose to join Moneyworks Wales:
We’ve always had a good mix of mental and physical benefits in place for our employees, but with the cost of living crisis in full swing and the effects of the pandemic over the past two years, declining resilience financial crisis has left our employees exposed to economic and financial setbacks. We know this can have significant effects on mental health and well-being, relationships and job performance.
We knew we had to look to help the financial resilience of our employees, and after contacting and working with Moneyworks Wales, we had a very informative meeting with Cambrian Credit Union, we knew from that meeting that by creating a cushion accessible savings, we could help protect our employees against further financial shocks.
When launched in September 2021, Moneyworks Wales was supported by the Welsh Government and TUC Wales, in recognition of the value of the scheme for Welsh workers.
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 of Wales. Many of us will need help at some point in our lives and the Moneyworks Wales payroll product offers employees the help they need to grow their money and become more financially resilient, while slowly building up a reserve of saving. I strongly encourage employers to work with their local credit union to better support their staff financially, and beyond.
Shavanah Taj, Wales TUC General Secretarydescribed the ability to “easily set aside money on every paycheck and establish some degree of financial security” as “more important than ever”.
Moneyworks is a win-win solution for employers and workers. Employee savings schemes such as these have proven to be an effective and easy way for employers to support their workers and there are already excellent examples supported by unions across Wales. Developing this network further can help give workers a greater sense of control over their finances.