Written by: Emma Lunn
Financial wellness platform FairQuid claims that 59,037 NHS staff borrow £ 45.1million in payday loans each year.
The company’s research, based on data from loan comparison site CashLady, shows borrowers have typically worked for the NHS for 48 months when they first take out a loan.
He revealed that the typical NHS payday borrower earns £ 1,529 per month and is looking to borrow just under a week’s pay (£ 351).
According to the FCA, payday loan borrowers typically pay back 1.65 times the original loan amount, meaning NHS staff could spend three-quarters of the total borrowed (£ 29.3million) on loan fees. ready.
Vishal Jain, Founder and CEO of FairQuid, said, “It’s important not to blame the borrower, the employer, or the payday loan companies. In this case, we know the NHS is a hugely responsible employer, but a lot of people with regular income don’t have any savings and need extra money for unforeseen events.
Data also showed that NHS staff make up the largest proportion of UK payday loan applicants at 3.47 percent.
Other employers cited in the study are Tesco (1.4%), Asda (0.9%), Sainsbury’s (0.7%) and the British Army (0.7%). According to the FCA, 5.4 million payday loans are used annually by 1.7 million people in the UK.
“How can we expect NHS workers to provide essential public services when they are worried about money? Employees bring this stress to the workplace, resulting in decreased productivity, decreased engagement, and greater attrition. Those in permanent full-time jobs should be rewarded for their seniority and hard work with more equitable access to emergency funds, ”Jain said.
FairQuid partners with nonprofit credit unions to provide financial products. Its “wellness platform” assesses the risk profile of individuals based on their tenure with an employer, behavioral data, and performance history, and allows users to take out a loan and create business goals. saving.