To some people, it may be imagined that payday loans are what people with low incomes, poor credit and a lack of financial acumen resort to in a desperate attempt to make ends meet. However, people from all walks of life are struggling at the moment and, as such, may now resort to payday loans.
Among them is a 156-page dossier presented by the Public and Commercial Services (PCS) Union to the government amid its ongoing pay dispute. It has been alleged that civil servants are struggling so much with the cost of living that some have had to resort to payday loans to make ends meet.
The list of “heart-breaking stories” highlighting the issues faced by some PCS members includes “one member describes having to borrow £100 in a payday loan, finding herself unable to make the repayments and seven weeks later owing £550.”
Other stories have talked about struggling with the cost of living, making choices between heating and eating, or facing unaffordable costs to commute to the office. The dispute over pay, pensions and redundancies has escalated to the point where the union is now polling 150,000 members working in 214 government departments over possible strike action.
PCS general secretary Mark Serwotka said the stories show government staff have become “the new working poor”.
They are “struggling to pay for petrol, struggling to pay train fares, struggling to buy food, nappies and medication [and] worn down by never being able to afford small treats,” he added, calling on Work and Pensions Secretary Chloe Smith to reopen pay negotiations.
It is not just some civil servants who may need to seek pay day loan debt relief. A recent survey jointly conducted by Nursing Notes and Nursing United UK, found 34 per cent of the nurses polled admitted to taking out payday loans, while many are skipping meals and using food banks to get by.
Among those polled, one nurse said: “It is unacceptable that as a professional with a university qualification in a demanding job” that they should be facing such a financial struggle.
This has led to nursing unions calling for a pay rise that would be five per cent above inflation to restore pay rates above last year’s levels.
Many unionised sectors have been involved in pay disputes and some have resorted to industrial action, including rail workers, postal staff, dock workers and barristers.
However, while there are many people backed by the collective power of trade unions seeking to force larger pay rises, there are many others not in such a position who have seen their spending power diminish and are struggling to make ends meet.
Many of these are still professionals in what may be relatively well-paid jobs, but for whom maintaining financial commitments is difficult. This may be even more true if inflation persists, not least as that may prompt further base rate increases by the Bank of England, hitting mortgage holders.
It may be a symptom of the cost-of-living crisis that even professionals like civil servants and nurses have ended up going to payday lenders. But whoever you are and whatever your line of work, it is vital to seek help if you have taken such a loan and are struggling with the resultant debt.
If you are struggling with debt as a result of the cost of living challenges you can contact the Fresh Start UK team today.
References:
1 PCS demands pay rise for DWP members | Public and Commercial Services Union
2 PCS demands pay rise for DWP members | Public and Commercial Services Union
3 Two in three nurses admit skipping meals or using payday loans to feed their families (nursingnotes.co.uk)4 Consumer price inflation, UK – Office for National Statistics
